The Telegraph
Since 1st March, 1999
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A-I raises fares, slaps surcharge

New Delhi, March 25: Air-India today announced a raise in fares by 5 per cent across the board from April 16 and fuel surcharge of $10 per coupon from April 1.

The announcement follows a decision to this effect taken by the International Air Transport Association. A person flying Delhi-Mumbai-London would now have to pay $20 extra as this represents two coupons or two stages of his flight. However, on direct flights, like Delhi-Amsterdam, the surcharge would be $10.

Civil aviation minister Shahnawaz Hussain, who announced the fare hike, also announced that a Rs 3,000 premia would be charged from passengers travelling from Kuwait to make up for losses on that route.

But he said a hefty war premia, which was being demanded by global insurance giants for flying to Kuwait, has been reduced on compassionate grounds.

Global insurance companies had asked the three airlines still flying out of Kuwait Indian Airlines, Air-India and Kuwait Airways to cough up higher premia of between Rs 35-50 lakh per flight to the city as these were considered at risk of getting hit by missile fire.

Indian government officials and the the board of airlines representatives, London, however, made a plea to the insurance firms, which reinsures aircraft, that since the Gulf flights were distress flights and the war zone had shifted to the centre of Iraq, rates should be pegged lower.

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