Jet fuel turns cheaper, but airlines refuse to oblige

New Delhi/Mumbai: Airlines today baulked at the prospect of fare revision following the cut in aviation turbine fuel (ATF) prices by oil marketing companies.
ATF prices were reduced around 4.2 per cent today after the government cut the customs duty on jet fuel to 5 per cent from 10 per cent yesterday.
Airline officials said the reduction was not sufficient to merit a cut in fuel surcharge, which was recently raised by Rs 300 for distances up to 750 kilometres and by Rs 550 for distances beyond that. “We are evaluating the impact of the reduction in ATF prices, but a cut in fuel surcharge seems to be unlikely. We have had several increases in oil prices this year, and a reduction in air fares with merely a 4 per cent discount in ATF prices does not seem to be a good idea” Hitesh Patel,” executive vice-president, Kingfisher Airlines told The Telegraph.
Indian Oil Corporation today reduced ATF prices for domestic airlines to Rs 73,473.19 a kilolitre from Rs 76,625 in Kolkata; Rs 66,226.66 per kilolitre from Rs 69,227 in Delhi; Rs 68,626.89 per kilolitre from Rs 71,759 in Mumbai; and Rs 72,363.58 per kilolitre from Rs 75,602 in Chennai.
05/06/08 The Telegraph

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Categories: Indian Aviation- In General Jun 2008