03 January,2011 06:00 AM IST | | Bipin Kumar Singh
Hike in Aviation Turbine Fuel on day one of year means cost of your airline ticket will only go skyward this year
After a turbulent year surrounding the escalating fares of private airlines, the New Year has begun on a rather gloomy note for air travellers.
Contrary to various statements made by the Civil Aviation ministry to keep airfares in check, a hike of upto Rs 200 in fuel surcharge will be borne by passengers on the domestic route.
While passengers were expecting to see a fall in airfares, the hike in Aviation Turbine Fuel (ATF) has ensured that air travel will continue to be a costly affair in the coming year. Airline companies say that they have no other option but to divert the escalated fuel cost towards the passengers by hiking their respective fuel surcharge.
Two major carriers, Jet Airways and Kingfisher, have increased the fuel surcharge by Rs 100 for travel distance up to 750 km, and Rs 200 for distance over 750 km.
"In order to reflect multiple recent increases in ATF, Kingfisher airlines has increased the fuel surcharge by Rs 100 to 200 on domestic flights," said a Kingfisher spokesperson. However a spokesperson of the National Carrier, Air India said that there is no such confirmation of increase in the prices of fuel surcharge by the airline.
However, experts feel the hike in ATF should not be a reason to reflect the excessive cost burden on domestic passengers. According to a MiD DAY report, ATF prices were reduced twice in 2010. The first discount was by 7 per cent, followed by a subsequent decrease by 4 per cent. However, on both occasions neither did airlines share the subsidy with the passengers nor did they reduce the airline surcharge. To add to that airfares remained exorbitant and marred in controversy through the year.
"The airlines never decrease the fare when they get discounts on ATF, but they never delay in hiking the surcharge as soon as the fuel cost is hiked," said Nakul Sharma, a frequent flyer from Borivli. "Passengers are never at the receiving end of any relief from the airlines."
Food for thought
Diesel and Petrol prices witnessed a record eight hikes in 2010, while the airlines enjoyed two reductions in fuel cost. Airfares remained the highest in 2010 and airlines increased their prices arbitrarily, a fact observed by the civil aviation ministry and DGCA.
Expert says
However, Milan Zatakia, chairman of Millennium Aerodynamic Ltd, had a different opinion. "Airfares will be based on demand and supply ratio. If travellers want to enjoy cheaper fares they should book the tickets in advance," Zatakia said.
MiD DAY first reported about the airfare getting all time high on November 13 and how the ticket prices touched an all-time high.
After the MiD DAY report, the airline regulatory body, Directorate General of Civil Aviation (DGCA) issued a circular to the entire airline to ensure transparency in the fares.
The circular asked the airlines to furnish a copy of the route-wise tariff across its network in various fare categories, in the manner it is offered in the market, to DGCA on the first day of every calendar month.
