AI Plans to Hike Fuel Surcharge


Manju V/TNN
 
Mumbai, Jun 18:
The surcharge hike by Jet and Kigfisher has only increased the difference between the total and basic fare. Jet Airways, which was the first to hike the fuel surcharge, cited the ‘‘sharp increase in ATF prices by 33% since March 2009’’ as the reason for increasing the fuel surcharge on domestic tickets. The immediate provocation seems to be Monday’s 12% hike.

For Jet Airways, the hike would take the total fuel surcharge on a ticket below a distance of 750km to Rs 2,450 and beyond that to Rs 3,400. For Jet Airways Konnect and Jetlite, it would be Rs 2,150 and Rs 3,100, respectively. Likewise, on Kingfisher First and Kingfisher Class, for distances below 750km, the fuel surcharge will now be Rs 2,550 while for distances above 750km, the fuel surcharge will be Rs 3,400. On Kingfisher Red, it will be Rs 2,350 for journey below 750km and Rs 3,100 for above. Low-cost airlines such as Spice Jet, Go Air, IndiGo currently charge about Rs 2,000 as fuel surcharge.

Air India is actively considering the possibility of fuel surcharge hike, said an airline spokesperson, adding, ‘‘hopefully we will be able to take a decision in a day or two’’. The airline currently levies fuel surcharge of Rs 1,950 and Rs 2,700 on air tickets up to and beyond 750km, respectively. Although passenger loads have not improved the world over and the effects of the slowdown continue to cut into demand, crude oil prices touched a high of $72 per barrel internationally on hopes of demand revival in the US.

‘‘This is totally unwarranted,’’said Sudhakara Reddy, president, Air Passengers Association of India.  

  

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Title: AI Plans to Hike Fuel Surcharge



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