Domestic airlines on Thursday welcomed the 12.5% cut in jet fuel prices, terming it as a much-needed relief but ruled out any immediate reduction in fares.
"ATF (aviation turbine fuel) rate per kilolitre in Delhi on Thursday reduced (by) 12.5%, or by approx Rs 7,500 per kl. Much-needed relief given high cost of operations in India," SpiceJet Chief Operating officer Sanjiv Kapoor tweeted. Welcoming the oil companies' move to reduce aviation fuel cost, a senior airline executive said it will take a while before the benefits accrued on account of lower fuel prices are passed on to the passengers. "This is certainly a positive move for the airlines and we welcome it. But, fares are unlikely to come down as they are market driven," the executive said on condition of anonymity.
ATF or jet fuel price at Delhi was cut by Rs 7,520.52 per kilolitre to Rs 52,422.92 per kl by the state-run oil marketing companies. The cut, effective today, is the sixth reduction in jet fuel rates since August. The price was last cut by 4.1%, or Rs 2,594.93 per kl, on December one. The losses posted by the domestic carriers are generally attributed to the high operating costs. Fuel makes up about 40-45% of most airlines' overall operating costs.
01/01/15 PTI/Daily News & Analysis
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"ATF (aviation turbine fuel) rate per kilolitre in Delhi on Thursday reduced (by) 12.5%, or by approx Rs 7,500 per kl. Much-needed relief given high cost of operations in India," SpiceJet Chief Operating officer Sanjiv Kapoor tweeted. Welcoming the oil companies' move to reduce aviation fuel cost, a senior airline executive said it will take a while before the benefits accrued on account of lower fuel prices are passed on to the passengers. "This is certainly a positive move for the airlines and we welcome it. But, fares are unlikely to come down as they are market driven," the executive said on condition of anonymity.
ATF or jet fuel price at Delhi was cut by Rs 7,520.52 per kilolitre to Rs 52,422.92 per kl by the state-run oil marketing companies. The cut, effective today, is the sixth reduction in jet fuel rates since August. The price was last cut by 4.1%, or Rs 2,594.93 per kl, on December one. The losses posted by the domestic carriers are generally attributed to the high operating costs. Fuel makes up about 40-45% of most airlines' overall operating costs.
01/01/15 PTI/Daily News & Analysis
