Air India ponders fuel surcharge rise

18 Jun 2009

Air India is actively considering a further fuel surcharge hike, after national rivals Jet and Kingfisher both raised their levies earlier this week.

The move comes as market speculators have once again pushed up prices despite a drop in demand. Air India currently levies a fuel surcharge of Rs 1,950 (US$40) and Rs 2,700 (US$57) on air tickets up to and beyond 750km, respectively.

On Jet Airways, the airline is now charging a total fuel surcharge on a ticket less than 750km to Rs 2,450 (US$52) and beyond that to Rs 3,400 (US$71). For its two budget-style subisidiaries, Jet Airways Konnect and Jetlite, it would be Rs 2,150 (US$45) and Rs 3,100 (US$65), respectively. On Kingfisher First and Kingfisher Class, for distances below 750km, the fuel surcharge will now be Rs 2,550 (US$54) while for distances above 750km, the fuel surcharge will be Rs 3,400 (US$71). On Kingfisher Red, it will be Rs 2,350 (US$49) for a journey shorter than 750km and Rs 3,100 (US$65) for above. Low-cost airlines such as Spice Jet, Go Air, IndiGo currently charge about Rs 2,000 (US$42) for their fuel surcharge.

The Air Passengers Association of India has condemned the rises as "totally unwarranted".

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Kenny Coyle

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