Friday, April 28, 2006

Domestic airfares set to turn costlier

New Delhi: The rise in global oil prices is beginning to impact on domestic air travel. While Jet Airways today announced that it would levy a fuel surcharge of Rs 300 on all domestic faresfrom May 1, the other airlines, including the low-cost airline Air Deccan, hinted at either in increase in fares or the applicable fuel surcharge soon.
Jet Airways decision to increase fuel surcharge would apply to both business and economy tickets, the airline said in a statement. The surcharge will also apply to the local leg of an international journey being undertaken by the passenger.
Delhi-Mumbai-Thiruvananthapuram sector without a break in journey then the fuel surcharge payable would be Rs 300.
The Chairman and Chief Executive Officer, Kingfisher Airlines, Mr Vijay Mallya also hinted at a fare hike.
The Air Deccan Managing Director, Captain G.R. Gopinath said although the airline planned to increase fares a decision was yet to be taken on whether the airline should levy a surcharge or increase the basic fare. The airline is said to be looking at levying a surcharge of between Rs 275-325, sources said.
The low cost airline Spice Jet that earlier in the day announced a fuel surcharge of Rs 50-100 decided to defer a final decision till the first week of May.
Indian was yet to firm up its plans.
28/04/06 The Hindu Business Line
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