Mumbai: Domestic airfares are likely to reduce by 5 to 10 per cent in the 30 days advance purchase segment as oil companies on Sunday cut Aviation Turbine Fuel (ATF) price by 11.3 per cent in line with the fall in international crude oil prices.
With this cut, the ATF price has been reduced to Rs. 46 a litre, making it even cheaper than diesel which costs between Rs. 51 and 56 per litre.
Airlines declined to commit themselves stating that airfares in India are not cost-related and the possible downward revision cannot be of the same proportion as the cut in ATF price.
There has been a cumulative 33 per cent reduction in ATF price since October and airlines are taking this opportunity to reduce their losses rather than passing on all the benefits to passengers.
However, those booking early can benefit by up to 10 per cent while those booking at the last moment will pay the market price depending upon the demand supply situation in that particular sector.
02/02/15 Lalatendu Mishra/The Hindu
With this cut, the ATF price has been reduced to Rs. 46 a litre, making it even cheaper than diesel which costs between Rs. 51 and 56 per litre.
Airlines declined to commit themselves stating that airfares in India are not cost-related and the possible downward revision cannot be of the same proportion as the cut in ATF price.
There has been a cumulative 33 per cent reduction in ATF price since October and airlines are taking this opportunity to reduce their losses rather than passing on all the benefits to passengers.
However, those booking early can benefit by up to 10 per cent while those booking at the last moment will pay the market price depending upon the demand supply situation in that particular sector.
02/02/15 Lalatendu Mishra/The Hindu
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