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Air India joins other airlines,raises fares

This is due to high sales tax charged by state governments.

Written by ENS Economic Bureau | New Delhi | Published: September 6, 2013 2:55:12 am

Air India today joined other airlines in increasing fares. The national carrier pulled back special fares being offered during the traditionally non-peak month of July and August. This means that flyers may now end up paying 15 per cent more for a ticket.

Air India’s move comes a day after Jet Airways and no-frills carrier SpiceJet hiked fares by 25 and 30 per cent,respectively,to mitigate the impact of the sharp fall in the value of rupee and the hike in jet fuel price by 6.9 per cent in September 1.

“We are restoring the fares to the levels that existed in June. We had announced special fares to attract passengers during traditionally low months of July and August,” sources in the airline said.

With Syria facing a threat of US military attack,crude prices have touched $115 a barrel. A steep fall in the value of rupee against the US dollar has also brought further troubles for airlines,as large portion of their cost is dollar denominated.

Earlier,the price of air turbine fuel was hiked by 5.8 per cent on July 1 and by another 6.3 per cent on August 1.

Around 50 per cent of airlines’ operating cost in India is on fuel. This is due to high sales tax charged by state governments.

National carrier revamps website

New Delhi: Air India has given its website a facelift. As part of the revamp,all offers are displayed on the home page of the website making it more user-friendly.

“The idea is to ensure that people are able to find key information on our website easily. The new format on the website is a boon for people,who want to access it on the move,” said GP Rao,DGM,corporate communications,Air India. ens

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