Date:04/07/2005 URL: http://www.thehindubusinessline.com/2005/07/04/stories/2005070401800300.htm
Back Foreign airlines hike fuel surcharge

Tunia Cherian George

Mumbai , July 3

IN response to the recent spurt in oil prices to $60 (Rs 2,640) per barrel, a couple of European carriers and a US airline have announced increases in the fuel surcharge on fares to long-haul and short-haul destinations.

According to a spokesperson for British Airways, the airline has raised fuel surcharge on all tickets issued after July 1. The surcharge on long-haul flights has been increased to $48 from $35 earlier. Similarly, the surcharge on short-haul flights has been increased to $19 from $16 earlier.

Lufthansa has also announced that it would increase fuel surcharge on all tickets issued from July 8. According to details on its Web site, the surcharge on long-haul routes will be increased to 37 euros (Rs 1,961) per leg from 27 euros earlier. The surcharge on intra-European routes would be raised from 7 euros to 9 euros per flight leg.

Meanwhile, Delta Airlines, which operates daily flights from Mumbai and Chennai to New York via Paris, recently increased its long-haul surcharge to $45 per direction from $35 earlier.

According to Mr Rodney D'Cruz, Manager Sales (India), Delta, the airline had increased the trans-Atlantic surcharge applicable to all long-haul flights about two weeks ago. The surcharge covers a number of expenses including fuel costs.

According to an official from Alitalia, the Italian national carrier had not raised the fuel surcharge so far, though it may consider a hike if the price of fuel increased above current levels.

However, the national carrier, Air India, has not hiked its fuel surcharge so far. Singapore Airlines has also maintained its fuel surcharge at previous levels. The airline had last increased its fuel surcharge on May 16.

According to information on the Lufthansa Web site, though oil prices have risen by about 35 per cent since the beginning of the year, the economy full fare from Frankfurt to New York has only risen by one per cent as a result of the fuel surcharge.

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