Air fares up as fuel gets dearer

Flying within the country just got more expensive. Indian carriers on Tuesday increased fuel surcharge, shortly after oil PSUs raised the price of aviation turbine fuel by 12-14% as crude oil prices continued to hover over $100 a barrel.

NEW DELHI: Flying within the country just got more expensive. Indian carriers on Tuesday increased fuel surcharge, shortly after oil PSUs raised the price of aviation turbine fuel by 12-14% as crude oil prices continued to hover over $100 a barrel.

Now, passengers will have to pay an additional surcharge of Rs 150 on flights up to 750km (roughly about an hour's duration), and Rs 350 on longer flights. So far, a uniform surcharge of Rs 1,650 was being levied.

Wolfgang Prock-Schaeur, Jet Airways' CEO, said: "For us, the hike will be effective from next Monday."

This is the first time the airlines have resorted to differential fuel surcharge to stop passengers from hopping on to trains and buses for short journeys.

Combined with the new fuel surcharge, the fixed cost on each ticket will now be in the range of Rs 2,175-2,375. This include components like passenger service fee of Rs 225 and congestion surcharge of Rs 150. Once basic fares are added, an average domestic air ticket will be low-cost only in name.

At Rs 2,000, the fuel surcharge has gone up 10 times since it was introduced in November 2005.
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(Courtesy Timesofindia.com)
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