Air fares to rise by up to Rs 300 | india | Hindustan Times
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Air fares to rise by up to Rs 300

Full service carriers Air India, Jet Airways and Kingfisher Airlines have decided to levy Rs 300 extra as fuel surcharge effective Monday to offset additional outgo on account of higher jet fuel charges.

india Updated: Dec 02, 2007 23:43 IST
Lalatendu Mishra

Full service carriers Air India, Jet Airways and Kingfisher Airlines have decided to levy Rs 300 extra as fuel surcharge effective Monday to offset additional outgo on account of higher jet fuel charges. While most airlines announced surcharge hike on Saturday, budget carriers will take the decision on Monday.

On last Monday (November 26) HT had reported about Rs 300 increase in fuel surcharge starting December as planned by airlines.

Public sector oil companies on December 1 early morning increased Air Turbine Fuel (ATF) prices by a whopping 14 per cent as international crude prices exceeded $100 a barrel.

As per the revised rates the cost of 1,000 litres of ATF in Delhi is priced at 4744.14 as against Rs 41417.33 in November. The ATF price in Mumbai is 49061.13 as against 42796.74 in November. In Kolkota ATF prices are at the highest and now priced at 53371.47 for 1000 liters.

Jet Airways and Air India in separate statements said that the hike in surcharge was necessitated in view of escalation of ATF prices. Including this hike, the total fuel surcharge has gone upto Rs 1650 a ticket.

Analysts feel that the constant increase in airfares would deter many passengers to fly. The advent of budget airlines ensured that a number of railway passengers take to the wings due to low fares offered by them. Now, as fares rise, this group may find it difficult to fly.

However, airlines have realised to charge on cost basis rather than increasing market share by offering tickets at unrealistically low prices.

For example the pioneer in low cost travel Deccan has now targeted the business class to improve yields rather than the common man whom it was targeting earlier.