The Hindu Business Line : SpiceJet cuts fuel surcharge by 50%

WITH the price of aviation turbine fuel (ATF) dropping in the domestic market by more than Rs 4,000 per kilolitre during the current month compared to the previous month, the low-cost airline, SpiceJet has announced a 50 per cent reduction in fuel surcharge being charged by it.

The airline's decision comes on the day Indian Oil dropped the price of ATF by about Rs 4,000 per kilolitre in Delhi and by almost Rs 4,200 per kilolitre in Chennai.

In Delhi, domestic airlines will now pay Rs 31,750 per kilolitre of fuel down from Rs 35,761 charged in November.

"The surcharge has come down by Rs 200 on the long haul sectors and by Rs 100 on the short haul sectors. A passenger travelling on a long haul flight will now only pay a surcharge of Rs 200 against Rs 400 charged earlier, while a short haul passenger will pay a surcharge of only Rs 100 against Rs 200 being charged earlier," the airline Chief Executive Officer, Mr Siddhanta Sharma, said.

The reduction in fuel surcharge will be available to passengers making their booking after mid-night on Thursday.

The other domestic airlines including Air Sahara and Indian Airlines, however, are yet to take a firm decision on lowering fares. The domestic airline industry has raised prices twice this year because of the northward movement in global fuel prices.

The cost of ATF constitutes between 30-35 per cent of the total operating costs of domestic airlines.

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