You may have to shell extra on airfares this festive season. Here's why Noor Arora
Planning to book air tickets during the festive season? You may have to pay extra on your air travel as airlines are expecting that oil marketing companies (OMCs) may go for a hike in aviation turbine fuel (ATF) prices as the government on Wednesday raised custom duties to 5 per cent on 19 items including the jet fuel - the costliest in India for domestic flights. With this move, airlines are likely to pass on higher costs to passengers as peak travel season is around the corner. Domestic airlines are already struggling with rising fuel prices, stiff fare competition, and declining rupee. With government’s decision to impose 5 per cent customs duty (which was nil earlier) on ATF which is one of the crucial components of airline’s operational costs, the airlines companies would be compelled to increase the air ticket prices.
ARTICLE SOURCE: BS