JET Airways raised its rebooking and cancelling charges by Rs200 (US$4) to Rs950 from April 1, further contributing to worries that fares for India flights are spiralling upwards. The move comes less than a month after the airline increased its excess baggage fee from Rs150 per kilogram to Rs200 per kilogram, citing rising jet fuel cost.
In addition, the recent hike in service tax by the Indian government will translate into an almost five per cent tax impact on airfares, driving ticket cost up by at least Rs200. This also came into effect from April 1. In a separate development, Delhi International Airport is asking for a seven-fold increase in airport charges, which may result in airlines moving their hubs or being forced to pass on the extra cost to passengers. IATA has protested against this proposed increase.
Meanwhile, Jet Airways’ latest increase will impact a large number of passengers as together with its low-cost subsidiary JetKonnect, the airline accounts for more than 25 per cent of market share.
“Due to the huge reduction in Kingfisher Airlines’ flights, fares have gone up by 20 per cent or more. Now these additional charges will make flights even more expensive, leading to less load on most sectors. The ailing airlines are likely to suffer the impact of higher costs on their passenger numbers shortly,” said Sanjay Maniar, director, Travelaid.
Lobsang Phuntsok, managing director, Tawang Tour & Travel, added: “Airlines should try to reduce operating costs to stay competitive, not increase fares and charges.”
