The Hindu Business Line : Domestic airlines to hike fares by Rs 150 per sector

Flights on most domestic airlines will cost Rs 150 more per sector from Friday. While Kingfisher Airlines, Air Sahara and Jet Airways are to levy a `congestion surcharge' of Rs 150 per sector, the low-cost airline, Air Deccan, also plans an increase. Indian also plans to levy a congestion surcharge although the effective date for implementation had not been firmed up till late tonight.

A spokesman for Jet Airways said that the traffic congestion surcharge of Rs 150 would apply on tickets sold here from December 1, while those purchasing tickets abroad would have to pay the surcharge from December 5.

"We are looking at the quantum, the time line and sectors on which the airfare could be increased. At the moment no decision has been taken," an Air Deccan spokesperson said.

Sources indicated that Air Deccan was likely to increase fares only on flights between the metros. The low-cost airline, Spicejet, however, has no plans of increasing fares, an airline official said.

Interestingly, the decision to increase domestic airfares comes at a time when the prices of ATF (aviation turbine fuel) are heading southwards.

In September, the average per-kilolitre cost of ATF was Rs 46,100 that declined to Rs 38,800 per kilolitre in November. ATF accounts for 30-35 per cent of the operating cost of most domestic airlines.

This year alone, the airline industry has increased domestic airfares thrice primarily on the grounds that there had been a sharp upward movement in global ATF prices.

However, airline officials insist that the decrease in fuel costs have been too "minimal" to warrant any revision in airfares.

Jet Airways, while releasing its second quarter results, stated that while fuel costs were higher by Rs 172.6 crore during the second quarter compared to the same period the previous year, it also had an impact of Rs 27 crore due to congestion related delays at major airports including Delhi and Mumbai.

More Stories on : Airlines | Trends | Jet Airways (India) Ltd

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

Stories in this Section
Fly more, fly free: New offer from Indian

Domestic airlines to hike fares by Rs 150 per sector

`Action against FoC vessels Week' in Kochi

`Land-locked States must have dedicated ports'

Sakhalin crude arrives today

New Mangalore Port Trust to hold trade meet

Truck rentals may come down by 2.5-3%