Rise in airfares likely after jet fuel prices go up by 2 pc


PTI, 17-01-2011 15:11:38


Write Comment     |     E-Mail To a Friend     |     Facebook     |     Twitter     |     Print


After a two per cent hike in jet fuel prices, airline officials today indicated a rise in airfares with Civil Aviation Minister Praful Patel saying the Ministry intervenes in such matters only if the increase is unjustified. 

 
Officials of Jet Airways and Kingfisher Airlines gave indications that the rise in costs would have to be partially borne by the air travellers though they did not directly say that the fares would rise soon.

"Airfares are governed by the airlines only and the government does not intervene. Government intervenes only when the hike is unjustified, as the DGCA did in December last. The Competition Commission had also intervened then after the spot fares rose suddenly (during lean season of November)," Patel said in reply to questions.

However, he maintained that when cost of aviation turbine fuel (ATF) rises, "it is natural that it will have an impact on the fares."

Asked when was an airfare hike likely following the seventh increase in ATF rates since October, Jet Airways chief Naresh Goyal said, "If costs rise, how can it not get reflected (in fares). If you run a business, you can’t sell an item costing Rs ten at Rs eight unless you decide to go bankrupt."

Both Goyal and a Kingfisher official, requesting anonymity, did not directly say when the prices would rise or by how much. Top IndiGo officials too did not respond to similar queries.

ATF rates in Delhi were hiked last week by 1.98 per cent to Rs 48,764 per kl. The latest hike came on the back of a Rs 935 per kl hike from January 1 and a massive 3.6 per cent increase on December 15.

Fuel cost accounts for almost 40 per cent of an airline’s total costs. 

Write your Comments on this Article
Your Name
Native Place / Place of Residence
Your E-mail
Your Comment   You have characters left.
Security Validation
Enter the characters in the image above
    
Disclaimer: Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Kemmannu.com will not be responsible for any defamatory message posted under this article.
Please note that under 66A of the IT Act, sending offensive or menacing messages through electronic communication service and sending false messages to cheat, mislead or deceive people or to cause annoyance to them is punishable. It is obligatory on kemmannu.com to provide the IP address and other details of senders of such comments, to the authority concerned upon request. Hence, sending offensive comments using kemmannu.com will be purely at your own risk, and in no way will Kemmannu.com be held responsible.
Similarly, Kemmannu.com reserves the right to edit / block / delete the messages without notice any content received from readers.




Udupi: Traffic congestion and dangers to pedestria
View More

LIVE STREAM OF MASSESLIVE STREAM OF MASSES
KEMMANNU CHURCH - Announcements.KEMMANNU CHURCH - Announcements.
Smparka Feb 2020Smparka Feb 2020
Land for Sale at Neelavara, Udupi District.Land for Sale at Neelavara, Udupi District.
Milagres English Medium, School, KallianpurMilagres English Medium, School, Kallianpur
Choice Furniture vast household showroom opens at Santhekatte, KallianpurChoice Furniture vast household showroom opens at Santhekatte, Kallianpur
Rozaricho Gaanz December IssueRozaricho Gaanz December Issue
Milarchi Laram - Issue Jan 2020Milarchi Laram - Issue Jan 2020
Focus Studio, Near Hotel Kidiyoor, UdupiFocus Studio, Near Hotel Kidiyoor, Udupi
Canara Beach Restaurant, Hoode/Bengre, Udupi.Canara Beach Restaurant, Hoode/Bengre, Udupi.
Delite Catering, SanthekatteDelite Catering, Santhekatte
Welcome to Thonse Naturecure HospitalWelcome to Thonse Naturecure Hospital
Kemmannu Platinum Jubilee Souvenir – Amruth KaanikKemmannu Platinum Jubilee Souvenir – Amruth Kaanik
St. Alphonsa of India