International carriers forced to think about increasing fares to/from India now the national airlines face additional woe after ATF spike

Victoria
By Victoria September 3, 2012 16:32

International carriers forced to think about increasing fares to/from India now the national airlines face additional woe after ATF spike

Below this story you will find comments from the Indian Aviation minister saying words to the effect that the government is helping aviation. In reality help seems to be a long way off for most airlines with anything to do with India. Now it is reasonable to assume that airlines will have to raise prices substantially to cover the current cost of fuel

On Friday aviation turbine fuel (ATF) rose 7.6%, to an all-time high of Rs 72,282 per kilolitre.

It is the fourth straight increase in rates since July.

It is worth remembering that although international airlines operating to India are exempted from state-level taxes they also pay nearly 16% more than the global average.

There is talk in government circles within India that Air India’s Rs.30,000 crore bailout, should be reneged upon due to the airline’s failure to win Start Alliance membership which was an original condition. This points to political positioning and could spell action is afoot. Of course Jet Airways is the Star Alliance pin up in India now.

Victoria
By Victoria September 3, 2012 16:32
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