Tomorrow onwards, IndiGo, India’s biggest domestic carrier, has decided to impose a new fuel surcharge, in an attempt to cover the costs for fuel. This is one more change for the airline, which has, for years under the leadership of Aditya Ghosh, tried to keep fares simplified for customers.
As per IndiGo’s latest press release,
A sum of Rs 200 will be added on routes less than 1000 km distance, and Rs 400 on routes longer than 1000 km distance. The surcharge will be applicable on all domestic trips i.e. within India, and will come into effect at midnight on May 29, 2018.
As per IndiGo, ATF prices are the highest in the past three years, so the airline is compelled to pass some of the increased cost burden to customers as a fuel surcharge.
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IndiGo ATR Tail
We are hopeful that the 1.5 lakh plus passengers flying with IndiGo each day will continue giving us support. We assure our customers that this move of reintroduction of fuel surcharges will not much impact the low fares that are being charged, and will not change IndiGo’s positioning as a low cost carrier that is also synonymous with being on-time and providing courteous and hassle free service.
IndiGo is the first local carrier to announce passing on the cost of spiralling jet fuel to passengers. Its moves will be keenly watched, and perhaps copied by other airlines as well. I don’t envy them for being in this situation to raise fares. But I would have rather they adjusted prices rather than go behind the rally of Fuel Surcharges. After all, they recently got fined by the CCI, for fuel surcharges, and they have been fined again and again.
However, if you want to book a ticket now and save that amount, you could still book a ticket overnight and save up to 400 INR per passenger per passenger. MakeMyTrip, here we come!
Good for investors in their stock, bad for passengers! Thats capitalism !