Airlines prices are soaring high as never before. This rise is being fuelled by rising record crude oil prices. Around 2004 the ATF price in India was Rs 21,000 per kiloliters and now it is Rs 71,000 per kiloliters. This has eaten all the airlines profits and now they are deep in losses.
It is estimated that in the current financial year the airlines in India will have a combined loss of around US $1.5 billion. To cut the losses and to reach the break even point, all the airlines including major & low cost carriers are increasing the fares.
The fare are increased in the form of fuel surcharge & also by increasing the base fare. Beside this there are other charges that add to the fare like congestion surcharge & passenger service fee.
Airlines losses are railways gain. The number of railway passengers has increased by over 30 percent this year and airlines have seen a passenger decrease of around 30 percent.
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