Financial Daily from THE HINDU group of publications
Wednesday, Mar 26, 2003
Financial Daily from THE HINDU group of publications Wednesday, Mar 26, 2003 |
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Airlines Logistics - Airlines Air India travel to cost more Our Bureau
NEW DELHI, March 25 FLIGHTS on Air India are set to become more expensive from next month. The airline's proposal for a 5 per cent hike in air fares has been accepted by the Directorate-General of Civil Aviation (DGCA) and is to come into effect from April 1. Similarly, the airline's proposal for charging an additional $10 charge per flight coupon has also been given in-principle acceptance by the regulator and will come into effect latest by April 16. In effect, what this will mean is that a passenger travelling by AI on Delhi-London-New York will have to pay an additional charge of $20 for the flight. However, if you decide to fly directly between India and New York despite the aircraft having a stopover in London, you will only be charged $10 for a one-way journey and $20 for a return journey. The airline has also announced Rs 3,000 increase in the one-way fare to Kuwait. Official sources said that the fare increase would not be applicable in case the passenger purchases a return ticket or flies by Indian Airlines. There is also some financial relief for the passenger flying with AI and IA to Kuwait. The authorities have been successful in convincing the global insurers of aircraft to waive off the proposed additional insurance surcharge that they were planning to impose on flights operating to Kuwait. Official sources said that negotiations had been going on between New India Assurance and the global insurance agents on extending the insurance cover for flights to Kuwait since Saturday last. "We were able to convince them that there was really no case for increasing the insurance cover for flights to Kuwait. We also told them that we were already paying $2.50 per passenger since November last year, so there was no real justification for putting any additional premium on us," official sources said. The global insurance companies had proposed a hike in insurance premium for flights to Kuwait, which would have meant that the two-state owned airlines would have had to pay an insurance premium that would have been more than the cost of operating the flight to the City State.
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