Tag Archives: Aviation Turbine Fuel

Ministry asks airlines to reduce fares

Ministry of Civil Aviation (MoCA), in a meeting held recently in New Delhi, has asked domestic airlines to pass on the benefits of reduced jet fuel prices to passengers by reducing fares. According to a report in Economic Times (ET) today, MoCA has also instructed the airlines to review their security systems and verify the background of their employees in …

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Aviation turbine fuel prices reduced by 11%

Aviation turbine fuel (ATF) prices have been slashed by over 11 per cent by state-run oil companies. This is the seventh straight reduction since September as price surged to an all time high of Rs 71,028.26 a kilolitre (in Delhi) in August. ATF in Delhi has been cut by Rs 4,208.37 to Rs 32,691.28 a kilolitre effective midnight tonight, said …

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Airlines must cut fares for survival and growth

The current slowing economy needs an extra large dose of stimulus to bring it back on track. Unlike previous slowdowns, this time a 360 degree effort is required to prime the pump and beat the “FUD” factor (Fear Uncertainty Doubt). The government has to do it’s part and focus on areas like infrastructure and other plan expenditure, the companies have …

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IndiGo also reduces fuel surcharge

IndiGo joined fellow airlines Air India, Jet Airways, JetLite, Kingfisher Airlines, and Kingfisher Red and announced a cut of Rs 400 in its fuel surcharge across all domestic routes, today. IndiGo President Aditya Ghosh said “Effective December 6th, IndiGo has reduced its fuel surcharge to match that of Air India, Jet Airways and JetLite,” He said this was aimed at …

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Kingfisher reduces fuel surcharges

Following reductions from fellow airlines, Kingfisher Airlines and Kingfisher Red, today, announced reduced fuel surcharge on air tickets. The cut on fuel surcharge on all domestic routes will be applicable with immediate effect, a company spokesperson said. Kingfisher Red (formerly Air Deccan) has reduced fuel surcharge For routes under 750 kms, the fuel surcharge is reduced by Rs. 300, from …

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Jet Airways and JetLite reduce fuel surcharge

I was just reading an article on Business Standard about no fare cuts by Jet and JetLite, and in the background, I get this news from Jet and JetLite. From tomorrow, December 6, 2008, JetLite has announced a reduction in applicable passenger fuel surcharges on all domestic routes. For routes under 750 kms, the fuel surcharge is reduced by Rs. …

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Business Standard: Calling the airlines bluff

Read a nice article by Anjuli Bhargava in the Business Standard today, about the airlines’ ticket prices, the fuel prices, and the politicians. I strongly recommend your reading it. Ms. Bhargava asks Can someone enlighten me as to what’s going on? I am referring to this quid pro quo that’s been playing out through the media between the airline industry, …

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The fuel hedging story

One frequently hears the term “fuel hedging”. May not be much in India, since airlines are not allowed to import fuel directly, and the government controlled oil marketing companies Indian Oil, Bharat Petroleum, Hindustan Petroleum, etc., do not practice hedging. Fuel Hedging is a contractual tool used by some airlines to stabilize jet fuel costs. A fuel hedge contract commits …

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Air India reduces fuel surcharges

Coupled with the recent terror attacks in Mumbai which will hit air traffic, this step by Air India (merged with the old Indian Airlines), will definitely increase the pressure on private carriers Jet and Kingfisher to reduce air fares by pruning the fuel surcharges. Air India announced a reduction in fuel surcharge for all domestic sector flights by INR 400 …

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Oil companies cut Aviation Turbine Fuel further

PTI reports, state-run oil marketing companies on November 3, cut jet fuel prices further by Rs 2,100 per kilolitre on top of the 17 per cent reduction, which was announced last week after the government exempted Customs Duty on fuel last week. Oil majors like Indian Oil Corporation (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) …

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Fuel prices reduce, air fares do not

Thanks to the global reduction in crude oil prices, and reductions in Customs duty (in response to desperate pleas by airlines), Aviation Turbine Fuel (ATF) prices in India, have retreated back to earlier levels of 8 months ago. Today, ATF is priced almost the same as in March 2008, but air fares show no sign of retreating. Airlines had almost …

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Airlines get relief from Government but make passengers pay Transaction Fee

The battered India airline companies received a lifeline from the government on October 31. The 5% Customs duty on Aviation Turbine Fuel (ATF) has removed. In addition the government controlled oil marketing companies have announced a price reduction of Rs. 6,000 per kilolitre on ATF. These two steps, will result in an about 17% reduction in prices, but predictably, airlines …

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Airlines to pay fuel dues in 6 monthly instalments

CNN-IBN reports that airlines will pay all outstanding dues on aviation fuel to oil companies in six monthly installments and will be given a credit limit of 90 days to purchase the current requirement of aviation turbine fuel (ATF), it was decided in the national capital on Wednesday. The decision was taken at a meeting of heads of various airlines …

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Taxes killing aviation – Interview with Dr. Vijay Mallya

Kingfisher Airlines Chairman, Dr. Vijay Mallya, in an interview with Ashwini Phadnis of the Hindu Business Line claims it is “Taxes, not over-capacity, that is killing the Indian civil aviation sector”. The business logic to Dr. Mallya’s statement is to reduce fares by reducing the ridiculous taxation structure on Aviation Turbine Fuel (ATF), which ensures ATF in India is almost …

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Indian domestic air passenger traffic goes from bad to worse

The bad news just does not stop for the domestic Indian civil aviation industry. Recently released figures show an alarming drop to only 8.6 million domestic passengers for the third quarter of (July-September) 2008, with a miserable 2.68 million passengers for September 2008. This represents a 17% reduction over the same period last year, a 19% reduction from the previous …

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UPA Ministers differ on bailout for aviation industry

According to a Press Trust of India (PTI) report, the downturn in the aviation sector yesterday brought the differences among UPA ministers into full play on issues like the bailout for the beleaguered industry. The Labour Ministry convened a tripartite meeting to discuss the sacking of 1,900 Jet Airways employees. “We will seek details of employment and inspect the work …

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Indian Oil commissions 36 km fuel pipeline to Bengaluru International Airport

In a major move to reducing emissions and traffic, while increasing reliability and purity, Indian Oil, commissioned its 36 km long pipeline from its bulk storage terminal at Devanagonthi to Bengaluru International Airport at Devanahalli, where its joint venture with Skytanking GmbH of Germany, IndianOil Skytanking Ltd. (IOSL), is the primary Aviation Turbine Fuel (ATF) vendor. The underground pipeline costing …

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