Skyrocketing Fuel Prices - The ATF (Aviation Turbine Fueol) Effect

Phrases such as 'adding fuel to fire' and 'fuellingthat to cope up with the soaring ATF prices, the
speculations' may be too costly to utter at anybody'sgovernment of India has reduced the Customs duty
whim at a time when the whole world is reeling underfrom 10% to 5%. Sadly enough, Air India has taken
a severe fuel crisis. Prices of fuel irrespective of theanother beating in that the United States based
end use have become dearer - be it Liquefiedreputation institute, which conducted and annual global
Petroleum Gas for cooking or gasoline for cars orsurvey 'Global 200' has concluded that Air India has
flying machines. Nations like India have never seenthe weakest corporate reputation.
such a onetime increase in gas. The jack-up in pricesState run oil firms in India have hiked prices of ATF
of petrol is a recipe for intensive attacks by politicalby 18.5%. The cost of ATF per Kiloliter in Delhi has
opponents against Indian rulers. Maybe this is thegone up from $1390.48 to $ 1648.26. In Mumbai, jet
buzzword for a ubiquitous political attack byfuel prices went up from $1543.45 to $ 1824.40. Air
opposition parties all over the world as the issue isIndia recently announced an increase in the fuel
assuming gargantuan proportions.surcharge in 2 slabs; For domestic travelers at the
Crude oil has become an ogre of sorts in the globalrate of Rs.300/- per passenger for flights that have
fuel scene. Rising costs of ATF (Aviation Turbinedestinations up to 750km and Rs.550/- per passenger
Fuel) is thinning the wallets of passengers in air trafficfor over 750 km. Private Air carriers have followed
as also air carriers, which is prompting thesuit with Deccan and Kingfisher Airlines hiking
managements to reduce the number of flights. In thesurcharge between Rs.300-Rs.550/-.With this hike,
Unites States air, travel has become inevitable forpassengers in India would be charged Rs.2250 and
couples, many of whom are youngsters separatedRs.2900 for journeys up to 750 km and beyond 750
by education and jobs that necessitate frequentkm respectively.
flying at weekends. The rising fuel costs haveCommercial sources say the rise is a whopping 220%
become a deterrent for such people - and regularin 2 years, though only 8% to 10% is passed on to
flyers in general, because of the sharp escalation inconsumers. Significantly, there has been a global price
fuel prices.in ATF in the last couple of months. This has led to
A case in point is the cancellation of the cheap andmany international air carriers curtailing operations.
direct route flight from Boston to Philadelphia by theSources reveal Airlines in India have lost Rs. 4000
airline Airtran. The carrier was constrained to cancelCrore in 2007 -2008 due to rising oil prices.
the flight because of the skyrocketing gas prices.A never-before scene is being witnessed in the
The passengers are forced to either cut short theirmedia with many a tip on saving fuel, which suggest
number of visits or endure the most of shelling outthe likes of traveling together, cycling for short
hundreds of dollars extra - to keep going steady withdistances, planning multitasks in a single trip etc. While
their relationships and meeting schedules. ReportsVirgin Galactic, the reputed airline has made a trial
reveal how a passenger takes a train to Providence,with bio-fuel, controversies exist among the
a bus to T.F.Green Airport, and flies Southwestintelligentsia about its continued success.
Airlines for about $160 dollars each visit - in order toThe meeting of the G-8 nations joined by India, China
avoid $300 plus roundtrip flights on other airlines.and South Korea at Aomori in Japan focused on the
There has also been an indirect rise in expenses sinceimportance of renewable energy sources to tackle
part of the journey goes in driving to Airports due tothe problem of fuel production. The gravity of the
cancellation of flights like Airtran. Driving toglobal situation regarding fuel was well understood,
Manchester and parking at Manchester Bostonwhen the US Energy Secretary Samuel Bodman
Regional Airport causes an additional dent in theadvocated aggressive investment in renewable
pockets by way of a $10 parking fee a day, whichenergy and augmenting conventional hydrocarbon
commuters reportedly lament. Experience in bussources.
commuting has also become costlier as the bus faresThe development of alternative fuels is still in the
had raised again. And the culprit is the much soughtnascent stage and one only hopes that a day may
after gas.come, when the dependency of fuels such as petrol
According to IATA (International Air Transportand diesel plummets to the barest minimum. Let us
Association) figures, 24 air carriers have clipped theirhope we bask in the glory of fuel prices of the
wings across the globe because of burgeoning ATFbygone eras, which would lessen the burden of travel
prices. The scene is worse in India, where 40% ofand increase the pleasure of being on skies of idyll.
operating costs go for higher taxes. It is small relief