Air India to hike domestic fares by 10%
National Aviation Company of India Ltd (NACIL), the largest airline of India created by the merger of Air India and Indian Airlines, is all set to hike fares by 10%.Airbus A380
By Nirbhay Kumar, |
NEW DELHI: National Aviation Company of India Ltd (NACIL), the largest airline of the country created by the merger of Air India and Indian Airlines, is all set to hike fares by 10% on domestic sectors. The company may also raise fuel surcharge on international routes.
The move comes in the wake of domestic oil marketing companies (OMCs), such as IOCL, BPCL and HPCL, hiking jet fuel price due to soaring global crude price, which touched $120 a barrel. ATF price in Delhi has increased by 35% in the last six months.
Naresh Goyal-owned Jet Airways, the largest domestic carrier by market share, has already increased basic fare by 10% effective Saturday. Due to a hike in ATF price last year, Jet has to fork out additional $6 million per month on fuel, which contributes to 40% of an airline���s operating cost.
The move comes in the wake of domestic oil marketing companies (OMCs), such as IOCL, BPCL and HPCL, hiking jet fuel price due to soaring global crude price, which touched $120 a barrel. ATF price in Delhi has increased by 35% in the last six months.
Naresh Goyal-owned Jet Airways, the largest domestic carrier by market share, has already increased basic fare by 10% effective Saturday. Due to a hike in ATF price last year, Jet has to fork out additional $6 million per month on fuel, which contributes to 40% of an airline���s operating cost.
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���We are discussing the quantum of hike in airfare on domestic routes though we are yet to take a decision. As has been the case earlier, Jet Airways first increases the airfare and we follow,��� said an Air India official. Air India brand has been retained and the airline now commands the second highest market share of about 16% in the domestic market after Jet Airways.
���If Jet has increased airfare by 10%, we would also effect similar hike,��� said another official. Though basic airfare offered by almost all the airlines have remained more or less same during the last one year, fares were increased by way of hiking fuel surcharge. As compared to Rs 900 last May, fuel surcharge has now increased to Rs 2,350.
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