Air travel in India set to be costlier
Ann/ The Statesman
If the Indian airline industry has its way, low-cost carriers and super-low discount schemes will soon be a thing of the past. Air travel is going to be expensive with airlines from midnight tomorrow imposing increased fuel surcharge of 150 rupees (US$3.7), which will take the total fuel surcharge to 1,100 rupees ($27). In fact Jet and Kingfisher Airlines are planning to hike prices and more private carriers are likely to follow suit. Jet Airways wants to raise fares by 10 per cent. The air carriers claim they have already suffered losses to the tune of 2,000 crore last year, owing to high prices of crude oil ~ highest in the world market. Other airlines, including budget ones, could soon hike air fares as well. The increase in surcharge is primarily to take care of the hike in the price of aviation turbine fuel (ATF), which was announced a few days ago. An airline official said an increase of between 600 rupees and 1,000 rupees is necessary for all carriers to become profitable.
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