Our Bureau

New Delhi, Oct. 12

INDIAN Airlines (IA) has announced that its domestic airfares would go up by 10 per cent from October 18.

In a statement, the airlines has said that there would also be a proportionate increase in all special fares including the promotional, excursion, easy and point-to-point fares. The fare increase will be applicable on all tickets issued or re-issued on or after October 18.

"Confirmed tickets issued before October 18 would be accepted for travel at the pre-revised fares for the ticketed itinerary," the airline has said.

IA joins the growing number of domestic airlines that have already announced a hike in their fares. While the domestic fares of Jet Airways and Air Sahara are to go up 10 per cent from October 14, the low-cost airline, Air Deccan has said that its fares would rise by 10-15 per cent soon. However, the Re 1 and Rs 500 fare tickets that Air Deccan offers would not be affected by the proposed hike. The airlines Managing Director, Captain G.R. Gopinath, said that the increase in fares would be on tickets priced above Rs 3,000.

The other low-cost airline, Spice Jet has also raised its fares marginally by imposing a temporary fuel surcharge that varies from Rs 200 to Rs 400.

The domestic airlines industry has been forced to hike fares as the price of Aviation Turbine Fuel has been moving northward in the recent past. While domestic airlines were paying about Rs 36,700 per kilolitre of ATF in September, the price peaked at Rs 38,400 this month. Fuel accounts for 30-35 per cent of the operating cost of most major airlines. This is the second time this year that the domestic aviation sector would be raising fares. In April, domestic air fares had gone up by 12 per cent.

(This article was published in the Business Line print edition dated October 13, 2005)
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