Cheaper plane fare in the air

New Delhi: Air tickets may cost slightly less, if airlines pass on a cut in jet fuel prices to passengers.
Oil companies today reduced aviation turbine fuel prices by 4 per cent, or about Rs 2,000 per kilolitre, for domestic airlines and $30 for international carriers. The new prices will be effective from Tuesday.
“Budget carriers are unlikely to cut their prices as they are operating on thin margins,” said R. Pathak, former director of Indian Airlines and an aviation analyst.
Air India officials said they could take a call on a price reduction in the domestic sector in the coming days. Sources, however, said since this was the peak season, the national carrier would rather wait and watch the trend before taking a decision.
A top Jet Airways official said, “We are assessing (the situation) but it will be difficult to cut fares as all airlines are facing a cost push. Prices of everything in the aviation industry from pilot’s wages to landing fees to spares have gone up considerably over the last year.”
31/12/07 The Telegraph

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Categories: Indian Aviation- In General Jan 2008