Jet Airways, India’s largest airway network, decided to raise basic airfare by 10% and increase fuel surcharge by Rs 350. Oil prices have gone up to $120/bbl, and still increasing. So the airlines are in a position to rise the air fare. This hike in air tickets will have a impact of raising price upto Rs 3,500 per ticket.

The new fuel price come into effect from tonight, and the fare hike will from this week end. Indian airlines & Kingfisher said that they are trying to stick to the position.

Jet Airways CEO Wolfgang Prock-Schauer said “High oil prices are making a huge hole in the airline’s operational costs. If oil continues to rule at the current levels, the fuel bill for the Indian airline industry will go up to $700 million”.

Passengers traveling on a short rout of 750 km will be paying a low fuel surcharge of Rs 1,950 and for routes exceeding 750 km will be paying Rs 2,350 as fuel surcharge. Due to this hike, it is expected the passenger inflow will reduce significantly. During the past 4 months the passenger demand has come down substantially.

Categories: Business
Tags: Air Fare, Airlines, features