New Delhi/Mumbai: With state-owned marketing companies reducing the
prices of aviation turbine fuel (ATF) to Rs 59,943 a kilolitre from
December 1 - 4.1 per cent lower than the previous month - domestic
airlines' fuel bill in the second half of 2014-15 is estimated to come
down by a combined Rs 1,200 crore.
ATF for domestic carriers has become 11.22 per cent cheaper since October and is expected to see more price cuts in the next three months. According to estimates by the Centre for Asia Pacific Aviation (Capa), fuel costs could fall by an average 15 per cent in the January-March period.
So, the average decline in fuel bill the last six months of the financial year could be 12-13 per cent. Since ATF accounts for over 50 per cent of domestic carriers' operating costs, this implies a substantial six per cent fall in their costs during the period. Airlines had bought Rs 18,674 crore worth of ATF for domestic flights last financial year.
Read news in full 30/11/14 Surajeet Das Gupta & Aneesh Phadnis/Business Standard
ATF for domestic carriers has become 11.22 per cent cheaper since October and is expected to see more price cuts in the next three months. According to estimates by the Centre for Asia Pacific Aviation (Capa), fuel costs could fall by an average 15 per cent in the January-March period.
So, the average decline in fuel bill the last six months of the financial year could be 12-13 per cent. Since ATF accounts for over 50 per cent of domestic carriers' operating costs, this implies a substantial six per cent fall in their costs during the period. Airlines had bought Rs 18,674 crore worth of ATF for domestic flights last financial year.
Read news in full 30/11/14 Surajeet Das Gupta & Aneesh Phadnis/Business Standard
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