Airfares go up as oil cos raise ATF prices

New Delhi: Airlines have started raising fares after oil companies hiked aviation turbine fuel (ATF, jet fuel) prices. India's largest airline Jet has increased fuel surcharge by Rs 200 on its domestic flights from Saturday. Other domestic airlines are going to follow suit, but in a staggered manner over next few days to avoid charge of cartelization.
"This (hike) will be applicable on all flights of Jet Airways, Jet Konnect and JetLite, for sale and travel effective Saturday," a statement by Jet said. Other airlines did not offer comment but industry sources said domestic fares are going to rise in coming days.
However, the pinch could be more than Rs 200 effectively in the coming festive season. While airlines announce hikes in fuel surcharge when jet fuel gets dearer, price movement in basic fares follows a complex bucket system, which keeps going north as seats get sold. So in peak travel season when the demand is high, basic fares would be at the higher levels too. Compounded with higher fuel surcharge, flyers can look forward to substantially costlier air tickets.
17/09/11 Times of India

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Categories: Indian Aviation- In General Sep 2011