Air India, a State-owned carrier has decided to cut airfares by 12%, which is expected to be implemented in mid-December. An internal National Aviation Company of India (NACIL) team, which runs Air India, is planning a 12% cut in fuel surcharge in the domestic metro routes first, and then across the country in early January. The 12% reduction in fares would be in fuel surcharge, which now stands as high as Rs 3,100 in metro routes compared with Rs 1,350 last November.
Airlines had imposed the fuel surcharge on fares following the surge in crude prices. If Air India decides to pass on the benefits of ATF prices by slashing fuel surcharge by 12%, then the airfare in the Mumbai-Delhi sector could come down to Rs 6,068 inclusive of taxes. At present, an Air India Mumbai-Delhi flight ticket costs around Rs 6,895, which includes Rs 3,150 as base fare and Rs 3,745 as taxes and service fee.
The quantum of fuel surcharge, which is the main component of an air ticket after the basic fare, varies from 45% to 60% of the total cost of a ticket. The price of aviation turbine fuel (ATF) has come down to Rs 39,767 per kilolitre (KL) compared with Rs 41,417 per KL last November. According to government data, air traffic grew by only 2.3% between April and August compared with 38%, a year earlier.
Airlines had imposed the fuel surcharge on fares following the surge in crude prices. If Air India decides to pass on the benefits of ATF prices by slashing fuel surcharge by 12%, then the airfare in the Mumbai-Delhi sector could come down to Rs 6,068 inclusive of taxes. At present, an Air India Mumbai-Delhi flight ticket costs around Rs 6,895, which includes Rs 3,150 as base fare and Rs 3,745 as taxes and service fee.
The quantum of fuel surcharge, which is the main component of an air ticket after the basic fare, varies from 45% to 60% of the total cost of a ticket. The price of aviation turbine fuel (ATF) has come down to Rs 39,767 per kilolitre (KL) compared with Rs 41,417 per KL last November. According to government data, air traffic grew by only 2.3% between April and August compared with 38%, a year earlier.
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