Aviation fuel hike to hit air travel rates (Lead)

May 1st, 2008 - 8:11 pm ICT by admin  

New Delhi, May 1 (IANS) Air travel is to become more expensive with Jet Airways and SpiceJet hiking fares and other airlines likely to follow suit after public sector oil companies raised aviation fuel prices effective from Thursday midnight. According to aviation industry sources, the hike is the result of a 10 percent increase in aviation fuel prices. Crude oil has touched $120 a barrel-mark in the international market

Jet Airways and SpiceJet would increase surcharge by Rs.150 on short-haul routes and Rs.350 on long-haul routes. While Jet will make the hike effective from May 3, SpiceJet will start charging more from May 2, according to reports.

Aviation officials here said the cost of aviation fuel in New Delhi has increased to Rs.58,387.92 per 1,000 litres from Rs.53,309.30 - a hike of Rs.5,078.

In Mumbai, rates have gone up by Rs.5,276.

SpiceJet Chairman Siddhnatha Sharma said: “SpiceJet will continue to use a differential surcharge model applied last month wherein short-haul sectors, such as Delhi-Jaipur, command a smaller surcharge compared with long-haul sectors such as Delhi-Bangalore.”

The May hike in aviation fuel follows a 14 percent jump in ATF prices in April.

Meanwhile, the proposed new round of fare increases will again hit passenger growth rates.

In the last quarter, the number of domestic air passengers grew just 11.12 percent over the corresponding period of last year.

Tags: , , , , , , , , , , , , , , , , ,

Posted in Business |