SpiceJet may further increase fares

HYDERABAD: Low-budget carrier SpiceJet today said it might further increase fares in the wake of high fuel cost, but absorb some of the rising costs by improving operational efficiency.

The airline is yet to take a call on when and how much would be the fare hike, SpiceJet Chief Executive Officer Neil Raymond Mills told reporters here.

"$120 per barrel (crude price) is a significant input cost. We may have to look at fares as I said earlier. We will have a look at other areas of our business. We can be more efficient than we are today to keep cost down so that we don't have to pass on the full burden on the passenger," he said.

He was in the city to formally sign an MoU with GMR Hyderabad International Airport Ltd, making the latter a hub for SpiceJet's new fleet of Bombardier Q-400 aircraft that are to be delivered from July.

The recent crude spike has forced Indian oil companies to hike aviation turbine fuel (ATF) prices 12 times since last October.

The price of ATF in the national capital now stands at Rs 59,157.32 per kilolitre, according to an official of Indian Oil Corporation.

The low-cost carrier raised prices by an average Rs 200 per ticket recently.

To a question, Mills said the airline aims to have a fleet of 70 aircraft by 2013-end, with a mix of 4,045 Boeings and 25 Q400 planes.