Air India reduces fares, cuts transaction fee

New Delhi: Air India on Tuesday cut fares effective tomorrow. The airline cut the transaction fee of Rs 350 that was introduced last month. Earlier, Air India had decided to reduce airfares by 12%, which was likely to be implemented in mid-December.
Currently, an Air India Mumbai-Delhi flight ticket costs around Rs 6,895, which includes Rs 3,150 as base fare and Rs 3,745 as taxes and service fee.The quantum of fuel surcharge, which is the main component of an air ticket after the basic fare, varies from 45% to 60% of the total cost of a ticket.
The price of aviation turbine fuel (ATF) has come down to Rs 39,767 per kilolitre (KL) compared with Rs 41,417 per KL last November.According to government data, air traffic grew by only 2.3% between April and August compared with 38%, a year earlier.
An aviation expert said higher fares have scared away passengers. Airlines have increased fares five times since early this year, stating that ATF prices have shot up, but now when ATF prices have actually come down drastically, carriers are giving other excuses to get more reliefs.
25/11/08 Economic Times

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Categories: NACIL Nov 2008