PIA - No decision yet on imposition of Fuel Surcharge

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PIA - No decision yet on imposition of Fuel Surcharge

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Meanwhile, Air India Express (AIE), the Indian budget airline, said it too was considering an increase in the fuel surcharge provided other airlines also do so, while Pakistan International Airlines (PIA) said it had no immediate plans to follow the airlines, who have recently revised the fares.

A Pakistan International Airlines (PIA) official said that there were no plans to pass on the impact of fuel prices hike to passengers, at the moment.

In fact the airline had only last week reduced its fare on the Karachi sector by Dh90, to compete with other airlines during the lean months of September-October.
7 September 2005

DUBAI —
Following the decision of major airlines operating in the UAE to go ahead with a fuel surcharge, India's national carrier, Air India will follow suit, Khaleej Times learnt yesterday.

Speaking to Khaleej Times, Jaishree Ramachandran, Marketing Manager for the airline, said that while a decision in this regard has not been taken as yet, the move is inevitable.

“Air India has a policy, applied across its operations worldwide, according to which we decide on issues, such as that of a fuel surcharge, by following the national carrier of that country,” she said.

She added that following the announcement yesterday on fuel surcharge by Emirates, Air India would finalise a similar move.

Meanwhile, Indian Airlines has so far not decided on the issue.

Speaking to Khaleej Times yesterday Alok Singh, the airlines' Country Manager said that no decision in this regard has been taken. “As of now there is nothing,” he said, adding that he was not sure when and if a surcharge would be imposed by the airline.

Emirates announced yesterday that it will be imposing additional fuel surcharges on all tickets issued in Dubai from September 14. The surcharge would be Dh320 on return tickets to all of the airlines' destinations, except Amman, Dammam and Beirut, return tickets for which will carry a surcharge of Dh250.

Thai Airways and Cathay Pacific have already announced the imposition of fuel surcharges, while several other major airlines, including Gulf Air, have indicated market forces and the rising cost of jet fuel will compel them to follow suit.

Meanwhile, Air India Express (AIE), the Indian budget airline, said it too was considering an increase in the fuel surcharge provided other airlines also do so, while Pakistan International Airlines (PIA) said it had no immediate plans to follow the airlines, who have recently revised the fares.

A source at the AIE, told Khaleej Times that the substantial increase in fuel prices had already hit the aviation industry hard.

We have not taken any decision yet, though we are considering a revision in the fuel surcharge," the source said, adding that it would follow the decisions taken by the national airlines of the host country in fixing its fares and fuel surcharges.

“If they go for revision, the AIE will follow suit,” the source said. "We are consulting other airlines at the moment, and assessing the market situation before taking a final decision."

The airline, like others, has a Dh140 fuel surcharge in place on a one way ticket and Dh220 on a return ticket.

AIE has 17 weekly flights to Mumbai, New Delhi, Cochin, Trivandrum, Calicut.

A Pakistan International Airlines (PIA) official said that there were no plans to pass on the impact of fuel prices hike to passengers, at the moment.

In fact the airline had only last week reduced its fare on the Karachi sector by Dh90, to compete with other airlines during the lean months of September-October.

Source: Khaleej Times
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