Airlines cut fares as fuel costs fall

Mumbai: Air India, Jet Airways and Kingfisher Airlines have withdrawn the transaction fee with effect from Wednesday in the wake of a sharp fall in Aviation Turbine Fuel (ATF) and due to expectations of lower sales tax outgo in the coming months.
India's three leading full-service carriers have scrapped the transaction fee on tickets sold through call centers, web sites or city offices. The fee ranges from Rs350 on a domestic economy ticket to Rs1,200-10,000 on first class international tickets.
"We are withdrawing the transaction fee for tickets sold through our offices, airport counters or web sites, effective today (Wednesday), a Jet spokeswoman said.
"For tickets booked directly with us through our website, call centre or city offices, there will be no transaction fee levied," a Kingfisher spokesman said.
State-run Air India said late on Tuesday that it has withdrawn the fee for domestic and international air tickets effective Wednesday.
Last week, Civil Aviation Minister Praful Patel asked domestic airlines to consider lowering air fares due to easing jet fuel prices. ATF prices, which account for 40-50% of an airline's operating costs, has dropped almost 40% since hitting a high of Rs73,673.56 per kilolitre in August.
26/11/08 India Infoline.com

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Categories: Indian Aviation- In General Nov 2008