\nAfter the latest cut, ATF price in Delhi will be Rs 62,538 per kilo litre (1,000 litres or kl), making the fuel for planes cheaper than petrol which now costs Rs 64.25 per litre here. This is the fourth straight cut since August. Jet fuel in Delhi has fallen from a high of Rs 76,241 per kl this January.
\nSpiceJet COO Sanjiv Kapoor said: \u201cWe have some of the lowest fares and highest fuel costs in the world. 7.3% ATF cut welcome relief, will help reduce bleeding. That\u2019s all.\u201d
\nOfficials of other airlines did not offer any comments but indicated that fares will not drop. \u201cATF price for domestic flights globally is the highest in India. Fuel price has dropped by 20? in past three months yet the benefit passed to ATF is just 10?. Our request for rationalizing jet fuel price in India has remained unheard for years,\u201d another airline executive said.
\nCentre for Asia Pacific Aviation (India) head Kapil Kaul said: \u201cI don\u2019t see any impact on fares but airlines will try to improve their bottomline as much as possible as market conditions continue to be severe and doesn\u2019t merit any pass on to consumers.\u201d
\nATF accounts for almost half of an airline\u2019s total operating cost. The 10% cut in past three months will mean 5% reduction in cost. But citing a mountain of accumulated losses and debt, airlines say flying is unlikely to become cheaper.
\nIndiGo claims to be the only constantly profitable airline here, and GoAir has also flown out of red recently.
\nAll others are deep in losses and struggling to survive like Air India and SpiceJet. Jet, also in serious losses, has got a lifeline in form of equity infusion from Abu Dhabi\u2019s Etihad.
\nA low-cost airline executive said, \u201cFull service airlines have complained to the aviation ministry that we are offering constant discount schemes this year. They have told the ministry that we are all making losses and still offering fares that don\u2019t reflect the cost. So how can we now be accused of not passing on the benefit to flyers after the ATF cut?\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"