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Air India slashes fuel surcharge for all flights on domestic sector

Air India has decided to reduce fuel surcharge for all domestic sector flights by Rs. 400 effective today. The fuel surcharge was Rs. 2,350 for sectors below 750 kms and Rs. 3,100 for sectors over 750 kms. The average reduction in fuel surcharge will be over 14.5 per cent. The cut-back in fuel surcharge is a consequence of the reduction in Aviation Turbine Fuel (ATF) prices from September 2009 onwards, including the reduction announced by oil companies for this month. Domestic air travel demand has been sluggish in recent months, and the reduction in fuel surcharge is expected to stimulate domestic air travel market during the winter peak season.



Raghu Menon, Chairman and Managing Director, Air India said, “We have decided to bring down the fuel surcharge as the crude oil prices have fallen globally, thereby bringing down ATF prices. Although crude oil prices are still volatile, we hope they will stabilise at the current levels, so that there is a short to medium term relief in ATF costs. This decision takes into account the reduced prices of ATF announced for the current month by the oil companies. While the airlines are no doubt going through difficult times, it is necessary for us to react positively to pass on some concession to passengers and generate demand.”