Airfares set to take off in two weeks

Some may opt for straight hike, others may levy fuel surcharge.

Following the rise in aviation turbine fuel (ATF) prices, domestic airlines are planning to jack up fares and impose a fuel surcharge in the next two weeks. While some airlines are planning to opt for a straight hike, others will levy fuel surcharges in the range of 5 to 8 per cent.

"Air-India (A-I) is planning to hike fares in the eastern route, including south-east Asian destinations soon. The quantum of hike is not yet decided. We will be sparing the western route since it is an off-season," an A-I spokesperson said.

As ATF accounts for 30 per cent to 40 per cent of the total cost of operations, the Board of Airline Representatives (BAR) - a platform for domestic and foreign airlines with international operations - would meet shortly to decide on fare hikes, the spokesperson said.

Meanwhile, low-cost airline carrier Air Deccan's managing director G R Gopinath, said the company would levy a surcharge ranging from 5 to 8 per cent in two weeks in the wake of a rise in fuel prices.

"We will be imposing the surcharge to the basic airfare which will reflect the rise in ATF," Gopinath said. Another low-cost airline SpiceJet said it is also planning to raise the fares.

"We are closely monitoring the situation. We will also have to raise the fares since others are planning to announce a hike," a SpiceJet spokesperson said.Saroj Dutta, executive director, Jet Airways, said, "We have not taken any decision as yet."

However, an Indian Airlines official said the company has no plans to hike fares. "We have not thought about a fare hike or fuel surcharge," an airline official said.

According to foreign airline officials, the companies would have to soon withdraw the price discounts and benefits announced earlier since they are not sustainable with the ATF prices shooting up.