Airlines to pass on new burden to travellers

Air travel is likely to become more expensive as domestic carriers deal with the double blow of an expanded service tax regime and a levy on crude imports from 1 April.

Finance minister Pranab Mukherjee's Budget for 2010-11 has proposed a 5% customs duty on crude petroleum, up from zero until now. This will make aviation turbine fuel (ATF), which accounts for almost 40% of an airline's operating costs, pricier.