Jet Airways, Kingfisher hike fuel surcharge by Rs300
18 Apr 2009
India's premier domestic private airlines, Jet Airways and Kingfisher Airlines, have increased fuel surcharge on domestic flights by up to Rs300 from Saturday, reflecting a 10 per cent hike in aviation turbine fuel (ATF/jet fuel) prices announced by oil marketing companies earlier this month.
The surcharge has been increased by Rs200 for sectors below 750 km and Rs300 for over 750 km, a Jet Airways spokesperson said.
State-run oil companies had on 15 April raised prices of jet fuel for the third time in a month, by about 6.7 per cent or an average of Rs2,750 per kilolitre.
As part of a restructuring programme to control cost, the company is planning to shut several of its sales offices and merge some outlets in major cities. There were also reports that about it is laying off about 400 employees.
''The aviation industry is undergoing a severe crisis worldwide and Jet Airways is taking a proactive approach to improve its viability,'' it said in the statement on Thursday.
In February, Jet Airways and its subsidiary, JetLite, have come up with a 30-day apex fares from Rs300 and Rs1, respectively, on key domestic routes to attract domestic travellers. These fares are valid until 30 April 2009, on both carriers.
For Jet Airways, the fuel surcharge would now be Rs3,000 for distances above 750 km and Rs2,150 for below 750 km while it would be Rs3,250 and Rs2,400, respectively for Kingfisher.
During the ATF price hike last week analysts opined that the airlines which did not pass on the benefit of 11 successive falls of ATF prices between August and January, will find it difficult to justify fares hikes this time.
Their rationale was that jet fuel is still at three-and-a-half-year low compared with prices at June 2005 level.
During the hike the national carrier, Air India-Indian Airlines combine, had ruled out any hike in fares.
''Our low fares will continue,'' Air India spokesperson Jitendra Bhargava said at that time.
However, even private carriers admit that hiking the already high fares would be difficult as passenger numbers are still not encouraging.
Riding on spiralling crude, ATF prices witnessed five successive jumps from last March and touched all time highs in August. Then oil suddenly cooled off and ATF touched three-to four-year lows by 2008-end.
