Financial Daily from THE HINDU group of publications
Thursday, Apr 27, 2006


News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Home Page - Petroleum
Logistics - Airlines


Airlines to hike fuel surcharge from May 5

Ashwini Phadnis

Air India, Thai Airways closely monitoring the situation


Cost effect
BA increases surcharge by £10; SriLankan by $30 to Europe
Lufthansa hikes its fuel charge for long-haul flights by € 10
Singapore Airlines to increase the surcharge by $10 on a return ticket between India and Singapore

New Delhi , April 26

This summer, get set to pay more for an international flight. The global increase in oil prices has led to airlines hiking their fuel surcharge yet again.

From May 5, the fuel surcharge on a return flight from India to Colombo, Maldives and Pakistan on Srilankan airlines would go up by $10 while the fuel surcharge on a return ticket to Europe, Canada, US and Australia would increase by $30, the airlines, Area Manager, Northern India, Nepal and Bangladesh, Mr Sharuka Wickrama-Adittiya, said.

The airline currently charges a fuel surcharge of $70 on flights to Sri Lanka, Pakistan and Maldives, while the current fuel surcharge on flights to Europe, US and Canada is $110.

The German airline, Lufthansa has also announced that it was increasing its fuel charge for long-haul flights by € 10. "The fuel surcharge on long-haul tickets sold on or after May 5 will be raised to € 62 per sector. The previous surcharge will apply to all tickets issued on or before May 5," the airline has said.

Similarly, Singapore Airlines has said that it will increase by $10 the fuel surcharge on a return ticket between India and Singapore for tickets issued on or after May 15.

Earlier this week, British Airways increased by £10 the fuel surcharge on a return ticket between India and the UK.

"Thai Airways constantly monitors international fuel prices. If there was a need then the airline would look at the possibility of revising the existing fuel surcharge," said the airline General Manager, Mr Viroj Sirihorachai.

When contacted a spokesperson for Air India said the airlines were closely monitoring the situation and may also have to increase the fuel surcharge.

Soaring oil prices

The price of oil has risen above $70 a barrel and experts anticipate it staying at this level for some time. This has left international airlines with little choice but to increase the fuel surcharge being levied on passengers.

"Previously, we estimated that during 2006-07, the annual fuel bill would rise by £400 million. But at these prices, we would now expect this year's fuel bill to be £600 million higher at £2.2 billion," said Mr Martin George, British Airways, Commercial Director.

The hike in fuel surcharge comes at a time when several airlines are offering lower fares to woo the customer. While British Airways is offering a return airfare of Rs 24,000 to the UK, Singapore Airlines has slashed economy class return fares between Delhi and Singapore by as much 60 per cent. The limited time offer from SIA allows a passenger to travel between Delhi and Singapore for Rs 8,888.

More Stories on : Petroleum | Airlines

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Induslogic plans two acquisitions during this year


Petroleum product sales growth flat in 2005-06
Students going abroad can get medical cover here `at better rates'
Airlines to hike fuel surcharge from May 5
Maruti Q4 net up 39 pc
Corporation Bank Q4 net dips 6.8 pc
NSE tightens derivatives norms
Dabur eyes acquisitions abroad
FII buying pushes Sensex up 292 points



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line