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09-06-2013, 05:07 AM #1
Air India hikes fares, officials say reverting to non-discounted ones
Air India, the state-owned carrier, has joined other airlines in raising its fares, with officials saying these were being increased to the levels two-three months ago.
The airlines had, along with others, announced special fares in June, which were 10-15 per cent lower, to attract more passengers.
"We are restoring the fares to the normal levels which existed in June," airline sources said, adding that these special fares were being pulled out in view of major increase in jet fuel prices.
Air India's move came a day after Jet Airways and no-frill carrier SpiceJet hiked fares by a steep 25 and 30 per cent, respectively, to mitigate the impact of the sharp fall in the rupee value and the almost 7 per cent rise in oil prices.
The hike by the airlines was generally in the base fares and not on the fuel surcharge.
International oil prices have been trading between $105 and $115 a barrel since the past few months and following the Syrian crisis, has seen more upward spurt.
Jet fuel prices were hiked by a steep 6.9 per cent, taking the rate to Rs 75,031 per kilolitre (KL) from September 1. This hike had come on the back of two rounds of ATF price hikes by oil marketing companies - 5.8 per cent on July 1 and 6.3 per cent on August 1.