Domestic airlines hike fares to beat rising costs

Published on Fri, Jun 20, 2008 at 08:37 |  Source : Business Line

Updated at Fri, Jun 20, 2008 at 09:10  

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New Delhi, Mumbai, June 19

Domestic air travel has become more costly. With the price of aviation turbine fuel (ATF) soaring, almost all airlines including Air India, Jet Airways , JetLite and the low cost airline, SpiceJet have announced an increase in basic fares.

Air India and Jet Airways will now charge a minimum basic fare of Rs 1,000 for distances of up to 750 km, while the basic fare for longer journeys will be Rs 3,000. "The lowest basic fare on Air India between Delhi and Chennai and Delhi-Hyderabad used to be Rs 2,225 and Rs 1,500 respectively. Now for both the sectors the basic fare will increase to Rs 3,200 and Rs 3,250 respectively," sources indicated. While the fare increase announced by Jet Airways became effective from Wednesday evening, the increase in fares of Air India will become effective from Friday.

JetLite too announced that it would charge a basic fare of Rs 500 for distances of up to 750 km and a base fare of Rs 2,000 for distances of over 1,000 km.

Kingfisher Airlines has not announced a fare hike yet, but it too will increase fares in the coming days. "A hike is inevitable given the fact that input costs have been rising steadily over the recent past," an airline spokesman said.

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