Sunday, January 25, 2015

Cargo industry demands reduction in airline fuel surcharge

Mumbai:  An industry body representing cargo and courier companies has sought civil aviation ministry intervention, as domestic airlines have refused to reduce fuel surcharge on shipments.

Fuel surcharge on parcels is charged on a per kilogram basis and varies from route to route. While international airlines and freighter operators have linked the fuel surcharge to crude prices domestic airlines do not follow the practice.

"Domestic airlines charge Rs 13-16.5 per kilogram as fuel surcharge. When surcharge was introduced in 2008 it was Rs 5 per kilogram and the jet fuel rate was over Rs 58,000 per kilolitre. Now the jet fuel rate has come down to over Rs 52,000 per kilolitre and we are demanding that airlines pass on the benefit by reducing surcharge,'' said Vijay Kumar, chief operating officer of Express Industry Council of India.

Kumar said the body has demanded that domestic airlines also link the fuel surcharge to price of crude oil and sought government intervention on the issue.
24/01/15 Business Standard
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