[ad_1]
This price level was last seen in March 2014 and is just short of the all-time high of Rs 77,089 (in Delhi) in October 2013. However, the impact now will be double as the rupee-dollar exchange rate is at almost Rs 73 whereas at start of 2014 it used to be Rs 61.
Airline stocks tanked in early trade on Monday at BSE after the ATF price hike. At 10 am, IndiGo was at Rs 800.9 (down 3 per cent) recovering from day’s and a fresh 52-week low of Rs 768.25; Jet Airways at Rs 171.25 (down 5 per cent) recovering from day’s and a fresh 52-week low of Rs 163.7 and SpiceJet at Rs 65.75 (down 3.5 per cent) recovering from day’s and a fresh 52-week low of Rs 64.05.
The fresh blow comes at a time when India’s only two airlines with wide body planes in their fleet that fly medium and long haul sectors like Australia, Europe and North America — Air India and Jet Airways — are struggling to survive. Other desi airlines have only single aisle planes in their fleet currently and are also deep in red.
“The twin impact — 7.3 per cent hike in ATF and crashing rupee — is going to be devastating for us as most costs of airlines like aircraft lease rentals, maintenance contracts are in US dollar. Jet fuel prices for domestic flights are already the highest in India globally,” said an airline official.
An airline like Air India anticipates ATF costs to rise by Rs 65 crore this month. AI, which has an annual fuel bill of Rs 8,500 crore, has about 15 per cent domestic market share. What this could lead to now, say sources, is higher spot fares in the coming festive season.
IndiGo had introduced a fuel surcharge on domestic flights of Rs 200 and Rs 400 for flights on sectors below and over 1,000 km, respectively, from May 30, 2018. At that time, ATF was Rs 70,000 per kl in Delhi and rupee-dollar exchange rate was at 67.5.
“Now with ATF at Rs 74,000 in Delhi and dollar at Rs 73, it is time airlines levying fuel surcharge could hike the same and others will start levying the same if they want to avoid a Kingfisher-like fate,” said an official.
Airlines are fuming as they do not understand why the government did not augment airport infra at choked hubs like Delhi and Mumbai, which needed a second airport five years back. “We waste tonnes of fuel on hovering in places like these. The government was just happy basking in glory of India being world’s fastest growing aviation market but did nothing about airport infrastructure. We should have had new and bigger airports getting inaugurated by now instead of just stone laying ceremonies being held now,” said a senior pilot.
Airlines say due to serious over capacity they have not been able to pass on costs in form of higher fares and everyone is bleeding with AI and Jet struggling to survive and others in a bad shape too.
“Passengers ka pata nahin, par airline chalane whale Hawaii chappal mein zaroor dikhenge jaldi,” said a senior airline official.
[ad_2]
Source link
No comments:
Post a Comment