Air Sahara, Deccan too increase airfare

Private domestic airlines Air Sahara and Deccan Aviation today announced a hike in airfare on account of the sharp increase in aviation turbine fuel prices over the last one year.

Air Sahara today announced a 10 per cent fare hike with effect from June 21 following an increase in the aviation turbine fuel price. Deccan's price hike will result in an increase of Rs 100 to Rs 125 in airfare in some of the sectors.

"We have decided to increase the airfare as the ATF prices have gone up considerably. This will help us make up some of the losses," said U K Bose, chief executive officer, Air Sahara.

Compared to the international average of 16 per cent of airline operating costs, ATF constitutes over 30 per cent of an airline's operating cost in India.

Alongwith this revision, the insurance surcharge, so far being levied separately, will now be absorbed in the basic fare.

Indian Airlines and Air-India are also expected to announce a fare hike by 10 per cent following a green signal from Civil Aviation Minister Praful Patel. "They have informed me about the need to hike air fares...I have said yes," Patel said.