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Our Bureau

New Delhi, Oct. 1

Low cost air travel is seeing some creeping increase in fares. In the coming days, such travel will become costlier with most airlines planning to increase the fuel surcharge by Rs 100 to offset their rising fuel bill.

This follows an increase of between Rs 1,604.52 per kilolitre (kl) to Rs 1703.49 per kl in the sale price of aviation turbine fuel (ATF) in October as compared to the previous month at the four major metro cities.

Airline officials point out that with ATF prices being on the rise continuously for the past several months, they have little choice but to pass on the increase to the passengers. In India, ATF accounts for between 30 per cent and 35 per cent of the operating cost of most major airlines.

A spokesperson for low cost airline SpiceJet said the airline was likely to announce a Rs 100 increase in the fuel surcharge within the next day or two. Jet Airways and the Madurai-based Paramount Airways confirmed a similar increase.

“Jet Airways will increase the fuel surcharge by Rs 100 for tickets sold on or after October 3. The increase will help offset the increase in fuel prices that we are facing,” the airline Chief Executive Officer, Mr Wolfgang Prock-Schauer told Business Line. At present the fuel surcharge is of Rs 1,100. The Managing Director of Paramount Airways, Mr M. Thiagarajan, also confirmed that they would be increasing fares by Rs 100 from October 3.

While most other airlines are silent on a hike in surcharge, in the past, the decision of one airline to increase the surcharge has seen the others also do the same .

“The cost push has to be passed on to the consumer. In the past six months, the impact of increase in fuel costs has been offset by increasing the fuel surcharge,” said the Chairman and Chief Executive Officer of Kingfisher Airlines, Mr Vijay Mallya.

This is the fifth time that airlines have hiked the fuel surcharge since September last year. In September 2006 the surcharge increased to Rs 750 before jumping to Rs 900 in May this year. In July, airlines raised the surcharge to Rs 950 before raising it again to Rs 1,100 in August.

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