Chennai: This may well be the time for airlines to offer cheaper fares as price of aviation turbine fuel (ATF) has dipped to an all-time low in six years, but passengers continue to be taxed with fuel surcharge since sales tax on ATF is high and varies across the country .
AirAsia and the Philippine budget carrier Cebu Airlines abolished fuel surcharge recently while Japan Airlines and Qatar Airways reduced their fuel charges after ATF prices dipped to $50 per barrel as against $100 per barrel as against $100 per barrel six months ago in the international market.
But Air India, Jet AirwaysBSE 2.36 % and Go Air continue to charge fuel surcharge and show them separately on the tickets while some other airlines have merged it with the base fare. In India, the surcharge was first added to the domestic fare when fuel price was at its peak in 2008. It also differs from airline to airline. Travellers pay Rs1, 750 to Rs1,650 on the Chennai-Mumbai route, and Rs2,400 on the Chennai-Mumbai route, and Rs2,400 on the Chennai-Delhi route as fuel charge.
The Air Passengers Association of India (APAI) has approached ministry of civil aviation seeking its intervention and demanded the ministry to tell airlines to bring transparency in fares.
02/02/15 V Ayyappan/Economic Times
AirAsia and the Philippine budget carrier Cebu Airlines abolished fuel surcharge recently while Japan Airlines and Qatar Airways reduced their fuel charges after ATF prices dipped to $50 per barrel as against $100 per barrel as against $100 per barrel six months ago in the international market.
But Air India, Jet AirwaysBSE 2.36 % and Go Air continue to charge fuel surcharge and show them separately on the tickets while some other airlines have merged it with the base fare. In India, the surcharge was first added to the domestic fare when fuel price was at its peak in 2008. It also differs from airline to airline. Travellers pay Rs1, 750 to Rs1,650 on the Chennai-Mumbai route, and Rs2,400 on the Chennai-Mumbai route, and Rs2,400 on the Chennai-Delhi route as fuel charge.
The Air Passengers Association of India (APAI) has approached ministry of civil aviation seeking its intervention and demanded the ministry to tell airlines to bring transparency in fares.
02/02/15 V Ayyappan/Economic Times
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