Tuesday, July 24, 2012

Steep ATF costs hit desi airlines

New Delhi: Indian carriers pay anywhere between 47% and 65% more for fuelling up their aircraft for domestic flights than other airlines globally. And, fuelling for international flights here means coughing up 13% to 27% more than their peers globally, a survey showed.
Aviation turbine fuel (ATF) or jet fuel accounts for almost 50-55% of an airline's total operating cost and this huge price difference is making Indian carriers uncompetitive given the stiff challenge offered by foreign biggies. While operating cost is among the highest here, a recent International Air Transport Association ( IATA) survey showed airfares in India are way lower than other aviation markets where costs are lower.
25/07/12 Saurabh Sinha/Times of India
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