Monday, December 01, 2008

Air India is going to reduce its fare prices from tomorrow

Air India, the National Airlines of India, has cut its fare prices. Today, Air India declared of cutting Rs. 400 fuel surcharge for all its routes. The decision came in the face of Indian public oil companies decreasing the rate of the prices of jet fuel from November 15, 2008. The company reduced fuel price by 12%. The new fare of Air India will come into effect from 12 a.m. Prices of “Aviation Turbine Fuel (ATF)” has been reduced by more than Rs 5,580 per kilolitre to Rs 38,163.23 per kilolitre. In August 2008, the price of ATF went up to Rs. 73,673.56 per kilolitre. Now, the company has cut the price by nearly 50%.

According to an Air India official, currently the carrier charge a fuel surcharge of Rs. 2,350 per person who are flying upto 750 km and Rs. 3,100 for passengers who are flying more than 750 km in India. In June, Air India increased the surcharge by Rs. 300 for passengers who fly below 750 km and Rs. 550 for passengers more than 750 km.

However, this has not changed the decisions of private flight operators yet. They said that they would keenly observe the whole situation. Aviation experts are saying that private operators have no way but decrease prices as Air India has decreased its prices.

Related articles:

The Hindu

Times of India