AI flights from Kerala, AP get cheaper on ATF cut

Air India will shortly announce up to 83% reduction in basic fares from Kerala (Kochi, Kozhikoda, and Trivandrum) and Andhra Pradesh (Hyderabad) after the two states reduced sales tax on aviation turbine fuel (ATF) to 4%.
Amidst spiralling crude oil prices, air fares have doubled in the last one year, but Air India has now taken the lead to slash fares at airports where the tax on ATF has been reduced.
Basic Fares on the Kochi-Trivandrum route (economy class) will reduce 83% to Rs 299 from Rs 1,780 and fares on the Kochi-Bangalore route will drop 67% to Rs 500 from Rs 1,525. Hyderabad-Delhi fares will be down to around Rs 4,000 from Rs 12,690. The drop in fares for business class will be much higher which will be implemented next month.
As the tax cut on ATF in the two states has brought down operating costs for airlines flying in these sectors, all airlines are bound to bring down their fares for flights taking off from there.
Air India will reduce basic fares and the Rs 225 airport tax and surcharge (Rs 1,950 for short-haul and Rs 2,350 for long-haul ) will be extra. Domestic airlines are suffering operating losses as ATF prices are showing no signs of softening.
29/05/08 Chanchal Pal Chauhan/Economic Times

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Categories: Air India Domestic May 2008