The Hindu Business Line : Aviation fuel prices cut by Rs 2 a litre

New Delhi, Feb. 28 Softening of the global oil market has seen the price that domestic airlines pay for aviation fuel decline for the second time in a fortnight, but passengers will have to wait longer to pay less for flying.

On Saturday, State-owned oil companies announced that domestic airlines in Delhi will now pay Rs 27.10 for a litre of ATF being uplifted during the first fortnight of March, down from 29.15 a litre being charged previously.

Similarly, between March 1 and March 15, in Mumbai an airline will pay Rs 2.12 less for a litre of ATF than it was paying previously. In Chennai, the saving for the airlines will be marginally higher as they will be charged Rs 2.21 a litre lower than before.

Now, domestic oil companies revise ATF prices twice a month so as to reflect any global variations in prices.

No fare cut yet

The airline industry, however, is showing no indications of reducing air fares just yet. “There are no immediate plans (to revise air fares),” a spokesperson of the Delhi-based low-cost airline, SpiceJet, said. Most other domestic airlines were silent on the matter.

ATF accounts for 45-50 per cent of the operating cost of most domestic airlines.

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