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Pay more to fly Jet, Kingfisher

New Delhi, Nov. 6: Private carriers Kingfisher and Jet Airways today raised fuel surcharge by up to Rs 200 following a 9 per cent spike in jet fuel prices.

Both the airlines have hiked the fuel surcharge by Rs 100 for distances less than 1,000 km and by Rs 200 for distances beyond that.

At present, domestic carriers levy a fuel surcharge of Rs 1,950 up to 1,000 km and Rs 2,700 for longer flights.

Air India and other low-cost carriers are yet to take a call on raising fares. However, analysts said the low-cost airlines could forgo the fuel price hike to give tougher competition to the full-service carriers.

While Jet Airways and Kingfisher were quick to hike the fuel surcharge following the 9 per cent rise in the prices of jet fuel, or aviation turbine fuel (ATF), they did not pass on the benefit to passengers when ATF prices fell for three consecutive weeks prior to the hike.

On October 31, state-owned oil firms increased jet fuel prices by 9 per cent to over Rs 39,000 per kilolitre following a spurt in crude rates. Fuel bill accounts for 30-35 per cent of an airline’s operational costs.

Aviation fuel prices had soared to Rs 71,028 per kilolitre in August last year when crude peaked to a record high of $147 a barrel.

State-run oil marketers IOC, Bharat Petroleum and Hindustan Petroleum revise jet fuel prices every month to bring them on a par with international rates.

Domestic airlines complain that the price of jet fuel in India is among the highest in the world and weighs on their cost of operation. High excise and sales taxes have made jet fuel expensive.

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