Friday, November 7, 2008

Airlines And Jet Airways Are Expected To Prices - Nov 07, 2008

Kingfisher Airlines and Jet Airways are expected to cut ticket prices by up to Rs 1,000 on domestic routes by December. The two carriers came under pressure after the aviation ministry told them to pass on the benefits of a series of the government measures to bail out the struggling industry. Last week, oil marketing companies had announced a 17% cut in aviation turbine fuel (ATF) prices. Along with this the government had reduced customs duty on jet fuel by 5%.

Following this, ATF prices in the metros have come down between Rs 44,965 and Rs 53,663 per kilolitre, a 20% drop from last month. The airlines also received an extension to pay off their fuel dues worth Rs 2,000 crore. However, the customers are yet to get any relief. Airlines had put the fuel surcharge on fares following the surge in crude prices as Kingfisher had raised the economy fare on the Mumbai-Delhi route to Rs 6,325, including a fuel surcharge of Rs 3,100, congestion surcharge of Rs 150 and tax of Rs 225.

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