The Hindu : Business : Jet increases fuel surcharge

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Sunday, Apr 19, 2009
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Jet increases fuel surcharge

Special Correspondent

Plans to close down some sales offices to counter slowdown

NEW DELHI: Jet Airways on Saturday increased the fuel surcharge on domestic flights by up to Rs. 300 following hike in surcharge in aviation turbine fuel (ATF). While the surcharge for sectors below 750 km has been increased by Rs. 200, for over 750 km distance the increase would be Rs. 300.

State-run oil companies had on April 15 raised prices of jet fuel by about 6.7 per cent for the third time in a month.

In a statement Naresh Goyal-owned airline company said: “The aviation industry is undergoing a severe crisis worldwide and Jet Airways is taking a proactive approach to improve its viability.”

To counter slowdown, Jet Airways is planning to close down some of its sales offices in major cities as part of fresh cost-cutting measures. Jet Airways is carrying out a major restructuring process, including shutting down and merging some of its sales offices in major cities.

Kingfisher follows suit

PTI reports:

For Jet Airways, the total fuel surcharge would now be Rs. 3,000 for distances above 750 km and Rs 2,150 for below 750 km.

The second major private carrier, Kingfisher Airlines, also raised the fuel surcharge by the same rates effective midnight tonight.

The airline’s spokesperson told PTI that the decision to raise the surcharge by Rs. 200 and Rs. 300 for distances flown below and above 750 km, respectively, followed successive increases in jet fuel prices.

With this increase, the total fuel surcharge to be levied by Kingfisher would rise to Rs. 3,250 and Rs. 2,400.

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