Airlines may hike domestic airfaresSeptember 16th, 2011 - 10:11 pm ICT by IANS
New Delhi, Sep 16 (IANS) Indian domestic airlines are set to increase airfares as a result of the latest hike of 2.5 percent in aviation fuel prices by the state-run oil marketing companies (OMC), sources said Friday.
“This (rise) may happen as the fuel prices are up again. But we have to see what the other industry players are doing and only then we will go ahead with any such hikes,” a senior Air India official told IANS on the condition of anonymity.
The industry may see this as a good opportunity to raise prices to offset inflationary pressures, he said.
“I do not think a slight price increase would dampen load factors as the festive season is about to begin,” the official added.
The OMCs had Thursday increased aviation fuel prices by 2.5 percent at Rs.57,689 per kilolitre in the national capital in their fortnightly review of international oil prices.
The increase has come after two consecutive cuts Aug 16 and Sep 1.
“This increase has also put the prices almost where they were earlier. So there is pressure which has started building up,” the airline official said adding that the concern is justified because fuel contributes to 40 percent of total cost in the industry.
Even aviation experts feel that the industry needs to off-set the increasing cost pressures in a moderate manner to make the sector more sustainable.
“The industry has been depressed for the last two quarters due to inflationary pressures and low load factors, so this may be the optimal time to go for a moderate price hike to off-set the cost increase and to make the industry sustainable,” Director-Aviation at global consultancy firm KPMG Amber Dubey told IANS.
- Jet fuel price hiked by 4.5 percent - Aug 01, 2012
- Airfare to rise along with fuel price, says Praful Patel - Jan 18, 2011
- Jet fuel price cut by Rs.622 a kilolitre - Dec 31, 2011
- Oil firms increase jet fuel price by two percent - Nov 15, 2011
- Jet fuel price hiked by 3.2 percent - Aug 16, 2012
- Hike in jet fuel price to jack up air fares: Patel - Jan 17, 2011
- Jet fuel price cut by Rs.1,974 a kilolitre - Jan 31, 2012
- Jet fuel price cut by Rs.350.70 a kilolitre - Feb 16, 2012
- Oil firms increase jet fuel price by 3.70 percent - Nov 30, 2011
- Oil firms cut jet fuel prices by 1.38 percent (Lead) - Dec 15, 2011
- Oil firms hike jet fuel price by over 6 percent - Jan 15, 2010
- Inflation pressure may re-emerge in India: Morgan Stanley - May 03, 2012
- Petrol price hiked by Rs.6.28 plus taxes, industry welcomes move (Second Lead) - May 23, 2012
- Vayalar tells states to cut tax on jet fuel - Sep 19, 2011
- Inflation declines marginally, RBI rate cut seen (Roundup) - Apr 16, 2012
Tags: air india, airline official, anonymity, aviation experts, aviation fuel prices, consecutive cuts, consultancy firm, dubey, festive season, indian domestic airlines, inflationary pressures, international oil prices, kpmg, load factors, marketing companies, moderate price, New Delhi, omcs, optimal time, price hike