In a major relief for airlines in the country, the price of aviation turbine fuel (ATF) has been reduced by 12% with effect from March 21. CNBC-TV18 was the first to report the reduction in prices, which is now reflecting on the Indian Oil Corporation website.
Traditionally, ATF prices are revised on the 1st of every month, hence the earlier revision took place on March 1. However, airlines have been requesting the government to revise oil prices on a weekly basis so that they can benefit from the decline in global oil prices.
In India, expenses towards ATF is the largest expenditure on the balance sheet of airlines, constituting almost 35-40 percent of total spend.
As of March 1, one kilolitre of ATF was available in Delhi at Rs 56,859.01 and in Mumbai for Rs 56,400.74. Similarly, the price of one kilolitre ATF in Chennai was at Rs 58,875.63 and Rs 62,160. 48 in Kolkata. These prices has been reduced by 12 percent from March 21.
The move will lead to some relief for domestic airlines as revenues have been severely impacted due to weak demand amid the coronavirus pandemic. Currently, most international operations have been suspended as a result of visa advisories and travel restrictions.
21/03/20 Defence Aviation Post
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Traditionally, ATF prices are revised on the 1st of every month, hence the earlier revision took place on March 1. However, airlines have been requesting the government to revise oil prices on a weekly basis so that they can benefit from the decline in global oil prices.
In India, expenses towards ATF is the largest expenditure on the balance sheet of airlines, constituting almost 35-40 percent of total spend.
As of March 1, one kilolitre of ATF was available in Delhi at Rs 56,859.01 and in Mumbai for Rs 56,400.74. Similarly, the price of one kilolitre ATF in Chennai was at Rs 58,875.63 and Rs 62,160. 48 in Kolkata. These prices has been reduced by 12 percent from March 21.
The move will lead to some relief for domestic airlines as revenues have been severely impacted due to weak demand amid the coronavirus pandemic. Currently, most international operations have been suspended as a result of visa advisories and travel restrictions.
21/03/20 Defence Aviation Post
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