Aviation turbine fuel price cut again

Mumbai, Sep 30 : In bringing some cheer to the cash-strapped airline industry, oil marketing companies have slashed the price of aviation turbine fuel (ATF) for the second time in a row with effect from Tuesday midnight.

The move is in line with the softening of global crude oil prices. In Delhi, the price would fall to Rs.56,447.80 per kilolitre from Rs.59,650.07 per kilolitre while in Mumbai it will cost Rs.58,479.37 per kilolitre, down from Rs. 61,834.81 per kilolitre.

However, it is not celebration time for passengers yet. Leading domestic airlines, including national carrier Air India and Jet Airways, have ruled out any revision in fares at the moment.

"For the time being, we don't want to change our pricing strategy. We want to see the medium-term development of ATF prices before taking a call. Even with this decrease, prices are significantly above the levels seen a year ago," Jet Airways CEO Wolfgang Prock-Schauer told IANS.

An executive in Air India who wished to unnamed told IANS: "The rationale of not reducing the fuel surcharge despite a decline in the ATF price is justifiable. We have to be compensated for the loss made when ATF was rising and there was no surcharge levied to absorb the hike."

Domestic carriers are expected to lose USD 2 bn in the current financial year, mainly on account of soaring fuel prices.