Newstrack

Airlines plan increase in fuel surcharge

EAW Staff - New Delhi

With aviation turbine fuel prices likely to go up again by around 4% for the month of May, airline companies are planning to increase the fuel surcharge, said Indian Airlines chairman and managing director, Vishwapati Trivedi.
The fuel surcharge, introduced in May 2006, currently stands at Rs 750. It was last revised in September when ATF prices stood at Rs 43,989 per kilolitre. Since then fuel prices have seen a continuous increase over the previous quarter, with the result that the fuel surcharge is likely to go up again by Rs 100, sources said.

The airlines have been contemplating an increase in the fuel surcharge if prices again register an increase in April end, industry sources said. In January, March and April this year while fuel prices saw an average increase of five per cent, two per cent and five per cent respectively across metros, aviation turbine fuel prices registered an average decline of nine per cent. Jet fuel prices currently average Rs 38,678 per kilolitre in the four metros. If ATF prices again rise by four per cent, they will cross the Rs 40,000 per kilolitre mark to stand at Rs 40,225 per kilolitre. Since November last year, the prices have kept below Rs 40,000. At the same time passengers can look forward to some relief since the industry is planning to lower the congestion surcharge by Rs 50-Rs100 on the back of a reduction in the hovering time over Delhi and Mumbai airports from 40 minutes to 20 minutes. Private sector carriers in December 2006 had introduced a congestion surcharge of Rs 150 to offset the loss incurred due to excessive fuel burn because of hovering over the airports.