Jet mulling fare hike, may levy surcharge on baggage
Jet mulling fare hike, may levy surcharge on baggage
Rising fuel prices have already forced airlines to increase the surcharge on fuel.

Berlin: Jet Airways is considering a surcharge on check-in baggage. Jet Airways Chairman Naresh Goyal said airlines have to look at additional revenue sources in view of mounting losses.

Goyal, who is at Berlin Air Show ILA said some American airlines are already charging a similar levy and added that there was no way for the global airline industry but to raise fares due to the hike in global crude prices.

"The aviation industry has to raise the fares as and when the hikes come. I am not in a business where I should only look for capacity. At the end of the day, I will have to work to give profits to my shareholders," Goyal was quoted as saying by PTI.

Goyal also took delivery of a new Airbus A-330-200 at the Air Show ILA, which is the seventh such aircraft out of Jet Airways total order of 15 A-330-200s.

He also announced the launch of daily services from Mumbai to San Fransisco via Shanghai from June 14.

Goyal said that initially, "We are going to lose money" on this flight. But this is a calculated risk and we are going to take that risk," he said. The airline will operate a Boeing 777-300 ER on the route."

He also referred to the India-London route, which also started with losses. "But today we have a share of 35 per cent on this route," he said.

Last week, low-cost carrier Deccan was reported to be considering surcharge on check-in baggage. Rising fuel prices have already forced airlines to increase the surcharge on fuel several times in the last one year.

(With PTI inputs)

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