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Jet Airways to hike surcharge

Our Bureau

NEW DELHI, Oct. 29

JET Airways is to go in for a three-tier increase in its insurance surcharge which is likely to come into effect from around November 1.

``The idea is to see that the passenger who flies for a shorter distance pays a lesser additional insurance surcharge, than what is paid by a passenger who flies for a longer distance,'' senior airline officials said.

While refusing to speculate on the levels of the proposed increase in insurance surcharge, senior airlines officials said that the details of the new additional surcharge were being worked out.

Jet, like Indian Airlines had announced an additional surcharge of Rs 100 or $2 per flight to cover increasing insurance costs only recently. The additional insurance surcharge for both Jet and IA came into effect from October 1 this year.

Meanwhile, officials of Air Sahara also indicated that the airline would take a decision on whether to charge an additional insurance surcharge only after Indian Airlines and Jet Airways take a final decision.

Jet Airways is also looking at various ways of cutting costs, including going in for a reduction in pay for certain categories of employees. However, officials refused to speculate on which categories of employees would be affected or what the cuts would be. ``The airline will make a statement when the issue has been finalised,'' officials said.

Also, the airlines is to swap two old aircraft for new ones shortly. ``Two old Boeing 737-400 aircraft are to go back and two Boeing 737-700 aircraft are to come in as part of the swap deal. Besides, the airline is also acquiring an ATR-72-500 aircraft,' ' officials said.