Wednesday, July 01, 2020

Unlock 2.0 Domestic Flights: Air Fares May go up Soon

From July 1 onwards, aviation turbine fuel is becoming dearer with the prices going up in metros. The last revision was on June 16. In Delhi, the prices were revised on June 1 as well. The price revision — basically price rise — in quick succession will eventually result in costlier air tickets, experts feel.
Here are the new prices: Delhi: Rs 41,992.81 per kilolitre, Kolkata: Rs 46,604.85 per kilolitre, Mumbai Rs 41,575.94 per kilolitre, Chennai Rs 43,332.53/kilo litre.
The last prices of ATF in Kolkata, Mumbai and Chennai stood at Rs 44,024.10, Rs 38,565.06, and Rs 40,239.63, respectively.
 Fuel price hike directly impacts ticket price as the cost of operations is likely to be impacted.
The airlines can’t buy ATF from other countries at a cheaper rate as international flights are not in operation. And the civil aviation ministry wants airlines to increase their capacity.
However, there are upper and lower limits on airfares, which were imposed after domestic flights resumed operations on May 25. It was apprehended that the private airlines will charge a hefty amount of ticket fare to compensate the losses they suffered during the two-month lockdown. Hence, the limits were imposed. The upper and lower limits may get extended beyond August 24, the aviation ministry recently said.
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