The Hindu : IA to increase Inland Air Travel Tax

Online edition of India's National Newspaper
Thursday, Nov 07, 2002

National

National

IA to increase Inland Air Travel Tax

By Our Special Correspondent

New Delhi Nov. 6. While announcing a 10 per cent across-the-board hike in its domestic fares from November 10, Indian Airlines said the Inland Air Travel Tax (IATT) — which is 15 per cent of the basic fare — would be increased proportionately, as also the excess baggage fares, which were 1.1 per cent of the economy class fares. The passenger service fee, which is Rs. 200 per passenger visit to the airport, and the insurance charge will remain unchanged.

With this, the one-way Indian Airlines sector fare from Delhi to Mumbai has been raised from Rs. 5405 to Rs. 5905 in economy class, Delhi-Kolkata fare is up from Rs. 6875 to Rs. 7515, Delhi-Chennai from Rs. 8960 to Rs. 9815, Delhi-Hyderabad from Rs. 7285 to Rs. 7965 and Delhi-Bangalore from Rs. 8710 to Rs. 9535.

The one-way Jet Airways fare in economy class from Mumbai to Delhi is up from Rs. 6095 to Rs. 6655, Delhi-Kolkata Rs. 7575 from Rs. 6925, Delhi-Hyderabad Rs. 7965 from Rs. 7285, Delhi-Bangalore is Rs. 9530 from Rs. 8710 and Delhi-Chennai Rs. 9810 from Rs. 8960. However, a late evening Delhi-Chennai economy fare remains Rs. 5559 in economy class.

Indian Airlines said the tickets issued on or before Nov. 9 would be accepted for travel commencing on or before Nov. 14 at the pre-revised fares within the normal validity of the original ticket. All tickets issued and reissued on or after Nov. 10 will be on revised fare. However, passengers wanting to cancel their tickets on account of revised fares would be allowed to do so without paying the refund fee.

According to the airline, there has been an increase of over 40 per cent in aviation fuel since March 2000 from Rs. 15,200 per kilolitre to Rs. 21,900, adding a burden of Rs. 175 crores this year. Devaluation of rupee added an additional cost of Rs. 50 crores, besides a rise in insurance and security costs after September 11 terrorist attacks in the U.S. The airline carried out a comprehensive fare increase in October 1998 subsequent to which a flexi-fare policy was introduced in May 2001 and APEX fare scheme earlier this year.

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