The Hindu Business Line : Domestic air travel to cost 10 pc more

THE good times for domestic air travellers will soon come to an end. Domestic air travel is set to become more expensive, at least by 10 per cent, by as early as the third week of this month.

Official sources confirmed to Business Line that a move to increase domestic airfares in view of the spurt in the prices of aviation turbine fuel (ATF) has been approved and will come into effect from around June 21.

The 10-per cent hike is to be across the board and is likely to include all routes and types of fares, including the reduced fares for which bookings have to be made in advance. Besides, the airlines are also planning to merge the Rs 250 insurance surcharge, which is charged separately at present, into the cost of the fare.

When contacted, the Minister for Civil Aviation, Mr Praful Patel, merely said that "an informal" briefing had already taken place between him and officials of Indian Airlines (IA) on the rising cost of ATF. The Minister said that the Ministry had asked IA to do whatever was required.

Emerging from the Ministry of Civil Aviation, the Chairman, Jet Airways, Mr Naresh Goyal, while stating that a hike in fares was inevitable due to the increase in ATF prices refused to speculate on the quantum. "We are working on the hike. We should be able to finalise it in the next day or two" Mr Goyal said.

The domestic airline industry has been badly affected with the northward movement in the domestic prices of ATF, which touched an all-time high of Rs 26,000 per kilolitre earlier this month. The state-owned IA has estimated that the recent hikes in ATF prices was likely to add about Rs 200 crore to the operations of IA and its subsidiary, Alliance Air, over the budget estimates for the current financial year 2004-05.

Meanwhile, late tonight Jet Airways issued a statement saying that it will increase its domestic air fares by 10 per cent from June 21.

Apart from an increase in the normal economy and business class fares (which are charged in Indian rupees), there will be a proportional revision in promotional, return excursion, point-to-point, advance purchase and the dollar fares, the statement said.

The airline adds that tickets issued or re-issued on or after June 21 this year will be at the revised fares irrespective of the date of travel. However, confirmed tickets issued on or before June 20 this year will be honoured for travel at the pre-revised fares for the ticketed itinerary only within the validity of the ticket, the statement added.