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Our Bureau

ATF prices have risen from Rs 38,000 a kilolitre in June to Rs 46,000 this month

New Delhi , Sept. 1

With the domestic prices of aviation turbine fuel (ATF) increasing from Friday, the domestic airline industry is considering hiking the fuel surcharge being charged at present.

The price of ATF price has been consistently moving upwards in the past couple of months. While in April this year the average ATF price was around Rs 38,000 a kilolitre, it touched Rs 42,000 a kilolitre in June and peaked at more than Rs 46,000 a kilolitre this month.

Fuel accounts for almost 35 per cent of the operating cost of domestic airlines.

"A team is looking into whether we should increase the fuel surcharge. If there is an increase we would look at hiking the existing fuel surcharge by Rs 100, which would apply on routes operated by both the Airbus and ATR aircraft," said Captain G.R. Gopinath, the Managing Director, of the low cost airline, Air Deccan.

Similarly, the Managing Director of Go Air, Mr Jeh Wadia, said that a decision on whether or not the existing fuel surcharge should be hiked would be taken by next week.

"We are evaluating the latest hike in fuel prices. We cannot say as yet whether the increase would be of Rs 50 or Rs 100," added Mr Wadia.

The CEO and President of the newly launched low cost airline, IndiGo, Mr Bruce Ashby said that the airline constantly monitored ATF prices and would consider an increase in the surcharge if it was warranted.

The full service airlines including Jet Airways and Indian, however, were yet to take a decision on increasing the fuel surcharge.

If the fuel surcharge is hiked, it would be third successive month that the surcharge moves northward. In July the airlines increased the fuel surcharge to Rs 500 from Rs 300. The following month it was again increased to Rs 650.

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