Mumbai : Be prepared to shell out more for your air travel. The measures in the budget have done little to cheer either the airlines or the Air India fliers. Courtesy the finance minister, your air travel is now being included under the service tax umbrella, even if you are flying as an economy class traveller.

This would mean a direct impact of 10% increase on your airfare, as currently the service tax is levied at 10%. Prior to the budget proposal, only the first and business class travellers were to pay this tax. Service tax is paid on the base fare component of the air ticket. So, if a one-way Mumbai- Delhi flight costs you Rs 5000, the base fare on this is Rs 3500 and the budgetary impact will be Rs 350 increase in this fare for you. Of course the international flights are going to cost more as the quantum of 10% hike on the base fares there will be more. So, for example, A Mumbai-London round-trip on an Air India flight costs Rs 33,951 (random fare), with Rs 14,900 as base fare, here the increase in fares would be upto Rs 1490.

The airlines however are tight lipped about the impact of the move. "We have to read the document (budget) before we decide if there will be a hike in airfares or not," said a Jet Airways spokeswoman. In a related development the oil marketing companies have also indicated that due to the budgetary measures, these public sector companies might hike the air turbine fuel (ATF) charges. Budgetary provisions include a five percent increase in customs duty which is likely to impact the prices of ATF. Analysts say that ATF prices can go up by Rs 1200-Rs 1400 per kilo litre. If there is an increase in the ATF prices than airlines might decide to pass it on to the passengers as they have done so in the past.