Air India to slash fares by Rs 400

The state-run carrier, Air India, has decided to reduce fuel surcharge for all domestic sector flights by Rs 400 from Tuesday, reports HT Correspondent.

The state-run carrier, Air India, has decided to reduce fuel surcharge for all domestic sector flights by Rs 400 from Tuesday. The fuel surcharge is Rs 2,350 for sectors below 750 kms and Rs 3,100 for sectors over 750 kms.

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The airline on Monday said the fuel surcharge has been reduced as a consequence of reduction of aviation turbine fuel (ATF) prices and also aims at lending the much-needed stimulus to the domestic travel that has been “sluggish in the recent months.”

The Hindustan Times had on Saturday reported that Air India will reduce its airfares in the range of 12 to 14 per cent.

Airlines had started levying fuel surcharge since July due to an unprecedented increase in ATF prices that had peaked to over Rs 73,000 per kilolitre in August.

“Although crude prices are still volatile, we hope it will stabilise at the current levels, so that there is a short to medium term relief in ATF costs,” said Raghu Menon, chairman and managing director, Air India.

But none of the other airlines have taken any decision to reduce airfares, despite falling jet fuel prices.