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saurabhm_101
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Joined: 19 Dec 2006
Posts: 529
Location: Mumbai
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 Posted: Fri Jan 04, 2008 10:35 am Post subject: Another hike in airfares to follow soon! |
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| Quote: | Price of jet surcharge may go up.
New Delhi: Air fares in the country are expected to go up again, with airlines planning a sharp hike in the fuel surcharge, which is currently at Rs 1,650 per ticket. They are fearing a hike in price of aviation turbine fuel (ATF), after global crude hitting the $100 mark on Wednesday. Airlines, which are already making huge losses, say they will not be able to absorb any increase in input cost, which means costlier flying. At this stage, no airline was able to give a figure on fare hike as oil PSUs determine ATF prices based on crude prices.
What’s more, “the increasingly difficult financial position that some airlines will get into because of rising fuel cost could pave way for more consolidation in the industry in the next 18 to 24 months,’’ said an industry insider. In the last financial year, airlines reported a collective loss of $500 million and the current one '2007-08' could be even worse. “Crude and ATF prices are interlinked, with the latter being higher than the former. Last year was difficult for all airlines and ATF pricing was a key issue. In both global and Indian context, it’s a miracle that airlines have survived by trying to absorb fuel price through other efficiencies. But I don’t know how long this can go on,” said V Thulasidas, Air India CMD. |
We havnt really discussed bout all these changes... according to me all these hikes are going to have a huge impact on airlines in the long run...! we may be looking at crew cuts, fleet cuts, leasing of aircrafts, etc.
what do u think?
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Flying High.... You and Me...! |
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nalini123
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Joined: 17 Aug 2007
Posts: 1033
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| Posted: Fri Jan 04, 2008 11:13 am Post subject: |
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It was bound to happen , IMO this will also result in Salary cuts of all the staff in an airline and also a lot . The economics related to this is really complex.
We just have to see how the airlines will start cutting costs , as in from which department will they start first. |
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karatecatman
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| Posted: Fri Jan 04, 2008 12:37 pm Post subject: |
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| Thulasi has reacted today. Says it is now a threat and will lead to visible cost cutting. |
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busintheair
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Joined: 29 Sep 2007
Posts: 273
Location: BOM
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