Jet, Kingfisher hike fares, Air India to follow

April 2nd, 2008 - 6:08 pm ICT by admin  

New Delhi, April 2 (IANS) Leading private carriers Jet Airways and Kingfisher Airlines have decided to increase their domestic air fares and Air India too is expected to follow the suit, thanks to an increase in aviation fuel prices, airline sources said Wednesday. The state-run oil companies Tuesday hiked the prices of aviation fuel - also called air turbine fuel (ATF) - by 13 percent in various cities following the rise in prices in the international market.

Soon after the announcement, Kingfisher hiked its ATF surcharge for long haul by Rs.350 and for short haul by Rs.150 with immediate effect, while Jet Airways would follow suit from April 7.

Air India officials met Wednesday to discuss the fallout of the aviation fuel price hike. “We haven’t decided on raising air fares as of now,” said an official.

Low-cost airlines are working out their new fares following the fuel price hike. These airlines, according to the sources, are adopting differential fuel surcharges on short haul and long haul passengers, ranging between Rs.100 and Rs.400.

The current ATF charge for long haul flights is Rs.1,650 per passenger.

According to airline operators, the ATF prices comprise over 40 percent of the total operational cost of any airline. The ATF price in India is considered to be one of the highest in the world, they said.

Related Stories

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

Posted in Business |