Rising crude fuels airline fare hike

New Delhi: If you are planning a holiday this summer, rework your budget. Air travel is getting costlier and Jet Airways and Spice Jet have already hiked fares.

The hike is the result of an increase of nine to 10 per cent in prices of jet fuel. The price of the Aviation Turbine Fuel (ATF) in Mumbai has been hiked by Rs 5,276 per 1,000 litre effective Thursday midnight, an official of Indian Oil Corp, the nation's largest fuel retailer, said.

ATF prices have been increased to Rs 58,387.92 per 1,000 litre in New Delhi from Rs 53,309.30 per 1,000 litre in March.

The airlines will increase their fuel surcharge from Rs 1,800 to Rs 1,950 for routes up to 750 km and from Rs 2,000 to Rs 2,350 for routes longer than 750 km.

Other airlines are likely to follow suit and increase their fuel surcharge.

Jet Airways and SpiceJet will increase the surcharge by Rs 150 on short-haul routes and Rs 350 on long-haul routes, sources in the airlines were quoted as saying by news agencues.

While Jet will make the hike effective from May 3, SpiceJet will do it from May 2.

The crude oil has touched $120 a barrel mark in the international markets, putting financial pressure on oil firms.

What it means for you

So just how much of will the raised air fares impact you, the traveller?

On a Jet airways flight between Delhi and Mumbai, for instance, the fare, inclusive of taxes, was Rs 11,140 so far.

After the fare hike, you pay an additional Rs 1,227 to take that flight.

In fact, because of a steep tax burden on aviation turbine fuel, fuel surcharge forms a major part of fares on both long and short-haul flights.

On long flights, like the one between Delhi and Mumbai, Jet will charge you Rs 2,725 just in taxes and fees.

It'll be slightly less at Rs 2,325 on short flights.

More compensation on baggage damage

Meanwhile, there could be relief on another front. The agony of delayed flights or losing one's baggage could now be easier to bear.

Aviation Minister Praful Patel has tabled a proposal that aims to facilitate higher compensation and prevent Indian passengers from discrimination.

As per the Carriage by Air (Amendment) Bill, 2008, Indian flyers will be entitled to bigger compensation for lost or damaged baggage, flight delays and injury or death during travelling.

But airlines are likely to hike fares due to these changes.

The bill seeks to increase compensation for "death or bodily injury" by seven times from about Rs 8 lakh to Rs 56 lakh.

Compensation for baggage damage can go up from about Rs 800 per kg to Rs 56,000 per passenger.

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