Reduce Air Fare

Public sector oil companies have recently slashed jet fuel or ATF prices by an average of Rs 2,125 per kiloliter. Aviation Turbine Fuel prices in Delhi has been reduced to Rs 27,106 per kiloliter against Rs 29,158 per kiloliter. It is for the eleventh time that ATF prices have been cut since September 1, 2008. airline companies said they would use the opportunity to cover accumulated losses and may not lower air fares in the near term. This has helped the prices slide by about 61% since August 2008. ATF makes up nearly 40% of airlines’ operating costs. This then translates to huge savings/profits for airlines given current pricing.

Airlines are hence, requested to pass on some benefit of the deal to the end-customer, in the form of reduced cost of air fare.