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Indian Airlines, Alliance Air hike fares by 10 %
Wednesday, 16 June 2004, 19:30 IST
NEW DELHI: State-run domestic carrier Indian Airlines and its subsidiary Alliance Air Wednesday announced a hike of 10 percent in fares to offset the impact of rising fuel prices in the global market.
The revised fares will come into effect from June 21, said an Indian Airlines statement issued here.
"The beginning of the current fiscal year saw aviation turbine fuel being priced at 
21,750 per kilo litre that rose to 22,900 per kilo litre in the very next month," said the statement.
"Then it jumped to 26,000 per kilo litre, an all time high price, on June 1, 2004.
"This adds about 2 billion to the budget estimates in the current fiscal year for the aviation turbine fuel cost on operations of Indian Airlines, including its subsidiary Alliance Air," it added.
The 10 percent tariff increase will also include some promotional fares as well as the popular apex fares.
The other two private sector domestic carriers, Jet Airways and Air Sahara, have already announced a 10 percent fare hike that will come into effect on June 21.
"We are aware that a hike in fares at this stage may hit domestic air travellers but our margins have been badly hit by the unabated rise in the aviation turbine fuel price," said an airline official.
He said the fuel bill of all domestic carriers had been steadily moving up since the last few months, largely on account of spiralling prices of aviation turbine fuel.
The cost of the fuel in the global market has risen nearly 40 percent in the last one year. It is one of the major cost components for airlines and accounts for about 30 percent of their operating cost.
Domestic Indian carriers had reduced fares in January this year after the government abolished taxes on air travel and moderately reduced excise duty on aviation turbine fuel.
Source: IANS
21,750 per kilo litre that rose to 22,900 per kilo litre in the very next month," said the statement.
"Then it jumped to 26,000 per kilo litre, an all time high price, on June 1, 2004.
"This adds about 2 billion to the budget estimates in the current fiscal year for the aviation turbine fuel cost on operations of Indian Airlines, including its subsidiary Alliance Air," it added.
The 10 percent tariff increase will also include some promotional fares as well as the popular apex fares.
The other two private sector domestic carriers, Jet Airways and Air Sahara, have already announced a 10 percent fare hike that will come into effect on June 21.
"We are aware that a hike in fares at this stage may hit domestic air travellers but our margins have been badly hit by the unabated rise in the aviation turbine fuel price," said an airline official.
He said the fuel bill of all domestic carriers had been steadily moving up since the last few months, largely on account of spiralling prices of aviation turbine fuel.
The cost of the fuel in the global market has risen nearly 40 percent in the last one year. It is one of the major cost components for airlines and accounts for about 30 percent of their operating cost.
Domestic Indian carriers had reduced fares in January this year after the government abolished taxes on air travel and moderately reduced excise duty on aviation turbine fuel.
Source: IANS