AI Hikes Fuel Charge,Others Set To Follow
New Delhi: Flying abroad this holiday season is set to bite
into your budget more than you thought.Air India has increased the fuel
surcharge of flights to North America and Europe by $20 (around Rs 1,100) for a
oneway ticket and $40 (Rs 2,200) for a return ticket.Flights to Seoul,Bangkok
and Singapore will cost $10 (Rs 550) and $20 (Rs 1,100) more for a oneway and
return ticket,respectively.The new charge will be applicable on all tickets
sold from Wednesday and other airlines are set to follow suit.
Airlines hike fuel surcharge in a staggered manner.AI has done it and others will follow suit.But the gap between the announcements may be more this time as Competition Commission of India chief Ashok Chawla is likely to meet Air Deccan founder G R Gopinath this week to see if the latters complaint of airlines acting as a cartel and hiking fares simultaneously merits an inquiry, said a leading travel agent who did not wish to be identified.
The hike comes at a time when international fares are already high.Almost all flights to and from India till January 15 are full,pushing up fares.For instance,Delhi-New York is around Rs 1 lakh in economy return at the moment while it usually costs Rs 70,000-80,000, said Anil Kalsi of the Society of Foreign Travel Operators (India chapter).After Wednesdays hike,the one-way fuel surcharge will be: $259 (Rs 14,245) for flights to North America and Europe;$269 (Rs 14,795) for first/business and $219 (Rs 12,045) for economy flyers to UK and Europe via London;$194 (Rs 10,670) for Germany and Europe via Frankfurt and Paris.
That is for flyers who can duck a triple whammy high basic fares,ever-rising fuel surcharge and new airport charges and still make it.Outbound international flyers from Delhi have to pay a user development fee in the range of Rs 600 to Rs 1,200 in addition to an airport development fee of Rs 1,300.Landing in Delhi from abroad means paying between Rs 490 and Rs 990 as incoming fee.
On their part,airlines complain of very high operating costs in India because of which despite hiking fares they end up making huge losses.In the 2011-12 fiscal,airlines lost Rs 10,000 crore.The grounding of near-bankrupt Kingfisher has acted as an eyeopener for airlines who are now trying to at least recover their costs in peak travel months of October-December and April-June.The money made in these two quarters will be used to tide over the remaining lean-travel and poor cash-flow quarters.Not doing so means shutting down like Kingfisher unless the government decides to give a bailout from taxpayers money like AI gets, said a senior official of a private airline.
Airlines hike fuel surcharge in a staggered manner.AI has done it and others will follow suit.But the gap between the announcements may be more this time as Competition Commission of India chief Ashok Chawla is likely to meet Air Deccan founder G R Gopinath this week to see if the latters complaint of airlines acting as a cartel and hiking fares simultaneously merits an inquiry, said a leading travel agent who did not wish to be identified.
The hike comes at a time when international fares are already high.Almost all flights to and from India till January 15 are full,pushing up fares.For instance,Delhi-New York is around Rs 1 lakh in economy return at the moment while it usually costs Rs 70,000-80,000, said Anil Kalsi of the Society of Foreign Travel Operators (India chapter).After Wednesdays hike,the one-way fuel surcharge will be: $259 (Rs 14,245) for flights to North America and Europe;$269 (Rs 14,795) for first/business and $219 (Rs 12,045) for economy flyers to UK and Europe via London;$194 (Rs 10,670) for Germany and Europe via Frankfurt and Paris.
That is for flyers who can duck a triple whammy high basic fares,ever-rising fuel surcharge and new airport charges and still make it.Outbound international flyers from Delhi have to pay a user development fee in the range of Rs 600 to Rs 1,200 in addition to an airport development fee of Rs 1,300.Landing in Delhi from abroad means paying between Rs 490 and Rs 990 as incoming fee.
On their part,airlines complain of very high operating costs in India because of which despite hiking fares they end up making huge losses.In the 2011-12 fiscal,airlines lost Rs 10,000 crore.The grounding of near-bankrupt Kingfisher has acted as an eyeopener for airlines who are now trying to at least recover their costs in peak travel months of October-December and April-June.The money made in these two quarters will be used to tide over the remaining lean-travel and poor cash-flow quarters.Not doing so means shutting down like Kingfisher unless the government decides to give a bailout from taxpayers money like AI gets, said a senior official of a private airline.
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