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Domestic airlines to hike fare
Wednesday, 06 November 2002, 20:30 IST
NEW DELHI: After enjoying the short-lived pleasures of cheap airfares, it is time for Indian travelers to come down to earth with a thud as domestic airlines prepare to impose the most sweeping fare hike in three years.
Citing the rising fuel rates and increasing overhead costs accompanying the surge in tourist traffic, main domestic operators Indian Airlines and Jet Airways have announced an impending across-the-board 10 percent fare hike from next week.
The hike, which industry watchers say is the first comprehensive increase since 1998 will lead to a strange situation, where traveling out of India will sometimes be cheaper than traveling within the country.
The price of an Indian Airlines ticket from Delhi to Mumbai is likely to increase from 
5, 045 to 5, 549, Delhi to Chennai from 8, 960 to 9, 856 and Delhi to Kolkata from 6, 875 to 7, 562.
"Our commercial department is finalizing the revised fare," said an Indian Airlines spokesman.
He admitted that the rising cost of aviation turbine fuel was the main factor behind the hike.
The cost of fuel has increased from 16, 000 per kilolitre in February to 22, 000 now.
Said a Jet Airways official: "Domestic flights are much costlier than international flights due to the government's tax on aviation turbine fuel. It is difficult to manage operations on low fares."
The only passengers to remain untouched by the hike, if only for a short time, will be those who had booked their tickets under the special promotional fares introduced in August-September to boost air travel.
The schemes continue till March. But those purchasing tickets from now will have to pay more.
The fare hike comes against the backdrop of a welcome surge in incoming tourist traffic as war clouds over the region have receded with a reduction in tension between India and Pakistan.
Threats of terror attacks and tensions in the region may have kept a large number of foreign tourists away from India, but non-resident Indians and persons of Indian origin, undeterred by travel warnings, have started pouring in.
Stic Travels chairman Subhash Goyal said there had been a 17 percent increase in incoming tourist traffic.
"Flights are full as overseas Indians are visiting relatives for the festivals. Rising cost of operation has prompted the fare hike," said Goyal, who also chairs a prominent industry association on travel.
Making a case for reducing fuel tax, Goyal said foreign airlines were being offered tax-free aviation turbine fuel at rates 20-30 percent cheaper than what is offered to domestic airlines.
The industry has sought a tax concession in order to bring the fares down.
Source: IANS
5, 045 to 5, 549, Delhi to Chennai from 8, 960 to 9, 856 and Delhi to Kolkata from 6, 875 to 7, 562.
"Our commercial department is finalizing the revised fare," said an Indian Airlines spokesman.
He admitted that the rising cost of aviation turbine fuel was the main factor behind the hike.
The cost of fuel has increased from 16, 000 per kilolitre in February to 22, 000 now.
Said a Jet Airways official: "Domestic flights are much costlier than international flights due to the government's tax on aviation turbine fuel. It is difficult to manage operations on low fares."
The only passengers to remain untouched by the hike, if only for a short time, will be those who had booked their tickets under the special promotional fares introduced in August-September to boost air travel.
The schemes continue till March. But those purchasing tickets from now will have to pay more.
The fare hike comes against the backdrop of a welcome surge in incoming tourist traffic as war clouds over the region have receded with a reduction in tension between India and Pakistan.
Threats of terror attacks and tensions in the region may have kept a large number of foreign tourists away from India, but non-resident Indians and persons of Indian origin, undeterred by travel warnings, have started pouring in.
Stic Travels chairman Subhash Goyal said there had been a 17 percent increase in incoming tourist traffic.
"Flights are full as overseas Indians are visiting relatives for the festivals. Rising cost of operation has prompted the fare hike," said Goyal, who also chairs a prominent industry association on travel.
Making a case for reducing fuel tax, Goyal said foreign airlines were being offered tax-free aviation turbine fuel at rates 20-30 percent cheaper than what is offered to domestic airlines.
The industry has sought a tax concession in order to bring the fares down.
Source: IANS