Soon, flyers to shell out Rs 300 more

New Delhi: Flying within the country will now cost between Rs 200 and Rs 300 more. Market leaders Kingfisher and Jet-JetLite combine hiked their fuel surcharge of Rs 1,950 and Rs 2,700 levied on flights of below and above an hour's duration to Rs 2,150 and Rs 3,000, respectively, with immediate effect. India's second biggest low-cost carrier SpiceJet also said it is looking at a hike of Rs 200-300 in the next few days. The move follows as jet fuel prices have gone up thrice in past one month after 11 successive falls since last August.
While other airlines — both low cost and full service — are likely to follow suit, they did not come out publicly on the issue to avoid the charge of price fixation by acting like a cartel. Only government-owned Air India said it had "no immediate plans" to hike fuel surcharge.
Airlines had introduced a uniform fuel surcharge of Rs 200 in November 2005 when ATF price in Delhi was Rs 35,761 per kilolitre. The current price here is Rs 31,926 per kilolitre, close to July-2005 levels. Which means that though ATF prices are 11% lower from the time fuel surcharge was first levied, this charge is up by a whopping 1,450%!
ATF price had started rising last April and touched an all-time high in August. Since then it fell over 10 times to a three-year low, but airlines did not pass on the benefit to passengers by lowering the fuel surcharge.
On their part, airlines say they have no option but to raise fares.
19/04/09 Times of India

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Categories: Indian Aviation- In General Apr 2009