New Delhi, June 19 (UNI) Air India, Jet Airways and Kingfisher have announced a hike in fares effective from tomorrow to make up for the Rs 8,000 crore loss expected to be incurred in 2008-09 on account of rising jet fuel prices.
The increase in the price of aviation turbine fuel (ATF) by 18.5 per cent last month had forced the air carriers to raise fuel surcharge.
And now with a decision on reducing sales tax on ATF being delayed, which would have helped in tiding over the crisis, the airlines today decided to pass on the addition burden to the passengers.
The airline chiefs, along with Civil Aviaition Minister Praful Patel, had met Prime Minister Manmohan Singh last week and asked for the Centre's intervention in declaring a reduction in sales tax on ATF.
Mr Patel also argued before the empowered group of State Finance Minister on VAT to give a ''declared goods'' status to ATF so that jet fuel would attract only 4 per cent sales tax instead of more than 35 per cent at present.
The States, however, asked the Centre to provide the details on price fixaton of ATF before they took up the issue at the panel's next meeting in Srinagar between June 21-23.
UNI YJ SR KP2024