Air fares set to go up as fuel prices rise

Air India increased fuel surcharge by Rs 200 and Rs 300 on on short and long haul domestic routes respectively


Sweta Ranjan | December 2, 2011

Flying during winter season is going to be tough for travellers. They might have to shell out more for travelling by air.

The latest hike in aviation turbine fuel (ATF) prices might have an impact on the air fare. Because of the hike in ATF, Air India has already increased fuel surcharge by Rs 200 on short haul domestic routes (below 1,400km) and by Rs 300 on long haul domestic flights.

Sources in the aviation industry reveal that the impact is going to cost on the pocket of the air passengers. During the Holidays the ticket fare is going to become more expensive due to high demands, says a source.

A source, not willing to be quoted, also revealed that most of the airlines have decided on the hike in air fare.

While the aviation industry in India has already been struggling for stability, the rise in ATF might further spoil the sector. Aviation industry in last six years has witnessed ATF prices rising more than double.

For air fare hike, all airlines in India blame it on rise in ATF prices. There have been constant demands by the airlines to reduce taxes on ATF.
ATF price was increased on Wednesday by an average of Rs 2,700 per kilo litre. Cash-strapped airline Kingfisher’s billionaire promoter Vijay Mallaya also twitted expressing remarks on ATF price rise, "Once again-petrol prices reduced and jet fuel prices increased enriching states with windfall gains. Killing air connectivity."

On another note, Mumbai airport authorities have refused to provide any services to Kingfisher Airlines (KFA) until dues are cleared or else the airlines will be asked to operate on cash-and-carry notice. To continue to avail services at the airport, the airline will have to pay Rs 60 lakh a day.

This is the second time the airport has put Kingfisher on cash-and-carry which might cause stalling KFA operations from Mumbai Airport.



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