With IATA suspending Kingfisher Airline & a steep increase in airport charges, carbon emission tax and a predicted jump in jet fuel prices are likely to drive fares up and make air tickets expensive. Industry experts believe passengers will pay at least 20-30% more on air travel in the coming months.
Officials at Mumbai airport said a rise in airport charges for both Delhi and Mumbai was imminent. The proposal to raise the charges is pending with Airport Economic Regulatory Authority (AERA) and will be cleared in the next couple of months as per a report in ET by Chinmayi Sahalya.
"The proposed charges for Delhi airport are 800% more than the prevailing rates, while Mumbai wants a hike of 500%," a senior airport official said. "Though airlines are protesting against such a steep hike, they are not likely to get respite from the situation. Hence, the cost of operation will have to be borne by the flyers,'' he added. Many airlines have threatened to withdraw operations if there is a quantum jump in charges.
Officials said jet fuel prices were also likely to spurt in the next two months. Travel to Europe may also get dearer if a controversial carbon emission tax is imposed by the European Union.
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