The Hindu Business Line : Airlines propose hike in fuel surcharge

New Delhi April 30 With the cost of aviation turbine fuel (ATF) heading north, the domestic aviation airline industry is all set to increase the fuel surcharge.

In Delhi, the per kilolitre price of aviation turbine fuel being quoted for sale in May touched Rs 37,421.94 up from Rs 36,149.04 the previous month while in Kolkata it is Rs 43,020.79 as compared to Rs 41,708.38.

Currently, the fuel surcharge is Rs 750 per flight and the industry is keen to increase it by Rs 150 to defray rising oil bill.

"The cost of ATF has risen for the past two consecutive months. We have to examine all options to offset the increase in costs. Nothing has yet been decided on the quantum by which the surcharge should be hiked," the Indian Chairman and Managing Director, Mr Vishwapati Trivedi, said.

Officials, however, indicated that the airline was likely to increase the fuel surcharge by Rs 150 per flight from May 4.

"We are reviewing our pricing since ATF prices have increased again," the IndiGo President and Chief Executive Officer, Mr Bruce Ashby, said.

A spokesperson of the low-cost airline, Air Deccan, said that while no decision had yet been taken the airline was evaluating all options.

"We are likely to take a decision in the next few days," the spokesperson said.

SpiceJet, another low-cost airline, however, said that it had no plans to increase the fuel surcharge.