Domestic air fares up after fuel price rise | india | Hindustan Times
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Domestic air fares up after fuel price rise

india Updated: Nov 05, 2007 00:16 IST
Samiran Saha
Samiran Saha
Hindustan Times
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Domestic air travel will become expensive from Monday following a Rs 150 increase in charges per ticket due to an increase in fuel surcharge being levied by all private airlines that followed a 4.15 per cent hike in Aviation Turbine Fuel (ATF) prices from November 1.

Fuel surcharge on a ticket in the domestic sector will now be Rs 1,350, up from Rs. 1,200.

This is the fifth hike in air fares in the current calendar year.

The increase in jet fuel price comes at a time when the Civil Aviation Ministry is trying hard to convince various states to rationalise sales tax and bring fuel costs down to international levels.

ATF in India is currently about 65 per cent costlier than the average international price.

An airline on an average spends about 35 to 40 cent of its operational costs on aviation turbine fuel.

Private carriers Jet Airways, Paramount Airways, Kingfisher Airlines and its low cost arm Air Deccan and low cost carrier SpiceJet have all hiked their fuel surcharge by Rs 150 on all classes and all sectors, effective November 5.

However, state owned Air-India is keeping its options open and is yet to decide on the fuel surcharge increase in its tickets.

A release by Jet Airways said that for tickets issued outside India, a surcharge of $34 will be applicable on each sector of domestic travel in India.

State-owned oil companies have raised ATF prices by 4.15 per cent for the domestic sector and by 4.79 per cent for the international sector.

Last month, private carriers increased their fuel surcharge on domestic tickets by Rs 100 to Rs 1,200 per ticket following a 4 to 5 per cent increase in ATF prices then.

In Delhi, the ATF price has been hiked to Rs 41,417 per kilolitre from Rs 39,769.75, while a kilolitre of fuel will cost Rs 42,796.74 in Mumbai.