AIR INDIA TO HIKE FARE BY FIVE PERCENT

---

Air India will hike its fare on all its routes by 5 percent from 16^th April this year. This was announced by the Civil Aviation Minister Shri Syed Shahnawaz Hussain while talking to newsmen here today. He said, Air India will also charge a fuel surcharge of 10 US Dollars per coupon from 1^st April. He said, while the fare hike is in line with the decision of the IATA, the fuel surcharge has been necessitated by the rising price of aviation turbine fuel(ATF). The Minister said, the fare from Kuwait to India has been hiked by Rs.3,000 as there is very little demand for seats on flights to Kuwait.

Shri Syed Shahnawaz Hussain said that there is however some good news for the airlines as the insurance companies have waived the higher insurance charge made to cover the risk for flights to Kuwait. This would benefit the airlines between thirty five and fifty lakh rupees per aircraft flown.