Showing posts with label Price Hike. Show all posts

Thursday, September 5, 2013

Spice Jet, now Air India Hike Air Fares By 25%

Air India on Thursday hiked passenger fares by 23 to 25 per cent on all domestic routes, following a sharp increase in the price of aviation turbine fuel (ATF). The carrier may also raise fares on international routes.

"We have hiked fares by 23-25 per cent

on all domestic routes. This has been done to offset the recent increase in ATF price," an Air India official told IANS.

The hike comes a day after Jet Airways and SpiceJet announced similar hikes in their airfares.

Carriers have been forced to raise tariff to mitigate the impact of the sharp fall in the rupee value and a near 15 per cent spike in oil prices of late.

Jet fuel prices were hiked by a steep 6.9 per cent, taking the rate to Rs. 75,031 per kilolitre (KL) from September 1. This hike had come on the back of two rounds of ATF price hikes effected in July and August by oil marketing companies.

ATF prices were increased by 5.8 per cent on July 1 and by another 6.3 per cent on August 1.

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- Unknown Updated at: Thursday, September 05, 2013

Wednesday, September 4, 2013

Air Fares Expected To Be Raised By 10-15% Following Jet Fuel Price Hike

Air fares are likely to increase by 10-15% from current levels in the immediate future following a steep hike in jet fuel prices, according to travel industry players.

"Fare hike is imminent. The only question is who takes the lead. I would expect a 10-15% increase in fares in the coming days," said Travel Agents Federation of India (TAFI) immediate past president Ajay Prakash on Wednesday.

Prakash, who is the chief executive of Nomad Travels, said fares have already seen some traction in the last two days and "the trend is likely to continue."

Jet fuel (ATF) prices were hiked by a steep 6.9%, taking the rate to Rs. 75,031 per kilolitre (KL) from September 1. This comes on the back of two rounds of ATF price hike effected in July and August.

ATF prices were increased by 5.8% on July 1 and by another 6.3% on August 1.

"With the steep hike in air turbine fuel prices, the airlines are left with no option but to jack up the fuel surcharge to offset the increase," Travel Agents Association of India President Iqbal Mulla said.

Expecting an increase of up to 10% in domestic fares, Mulla said the sharp decline in rupee value against US dollar and high jet fuel prices will have multiple effects on ticket rates.

Airlines Air India, Jet Airways, SpiceJet and IndiGo did not respondent to queries on the issue.

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- Unknown Updated at: Wednesday, September 04, 2013

Saturday, August 31, 2013

Mercedes Benz Price to Hike by 4.5 percent tomorrow!

NEW DELHI: German luxury car maker Mercedes- Benz on Thursday said it will hike prices of its entire model range in India by up to 4.5 per cent from September 1 to partly offset impact of rupee depreciation and higher import duties.

The quantum of price revision will be in the range of 2.5 per cent to 4.5 per cent across the models that the company sells in India.

With the latest price revision, the company's new A-Class 180 CDI luxury compact car will now be priced at Rs 22.05 lakh, an increase of 4 per cent, Mercedes- Benz India said in a statement.

The B-Class 180 CDI model will now be pricier by 4 per cent at Rs 23.50 lakh while the C-Class 200 CGI sedan will now cost Rs 32.25 lakh, an increase of 2.5 per cent, it added.

The newly launched E-Class 200 CGI saloon, will now be available at Rs 42.16 lakh, up by 3.5 per cent while the sports utility vehicle ML-Class 250 CDI would be expensive by 4 per cent at Rs 50.98 lakh (all prices are ex-showroom Mumbai).

"The rising input costs along with higher import duties have been creating significant pressure on our bottomlines for quite some time now. The constant weakening of the currency and the increase in other relevant taxes further impacted the business, adversely," Mercedes-Benz India Managing Director and CEO Eberhard Kern said.

He said the company has been been absorbing a significant portion of these impacts till now, but to run a sustained and profitable business in the long run, revising the prices upwards was inevitable.

When asked if the rupee continued to slide against the dollar further, would the company hike the price, Kern said: "The price hike that we are undertaking does not cover the impact of the current exchange rate hit and if this continues we will have to have a re-look at the pricing. We are hoping that the exchange rate returns to a reasonable level."

On Wednesday, General Motors India had hiked the price of its three models by up to Rs 10,000 from the first week of September due to a sharp depreciation in the rupee against the US dollar.

Earlier this month, BMW group had also hiked price of its products across models, including the Mini, by up to 5 per cent.

Last month, Audi had also hiked prices across its models in India by up to 4 per cent, a maximum of Rs 4.42 lakh on its R8 model to offset the impact of the rupee depreciation and rise in input costs.