The world has become a global village with the onset of revolutionary technologies in the communication industry. People belonging to different parts of the world can get connected through video chat or voice calls in just a few seconds. This increased communication led to expansion of business as well as personal relations with people of different cities and countries, which in turn increases the need to cover long distance journeys for personal meetings, when required. People involved in such cross-country or cross-city businesses often opt for air booking to save their precious time and reach the destination without any hassle. Significant reduction in air fares has increased the affordability, and hence reports show a long jump in the number of fliers in the recent years.
The cost aviation turbine fuel (ATF) is extremely high in India as compared to other parts of the world. In order to provide a platform for new entrants and motivate existing player, respective authorities are making efforts to bring it down. A reduction of approximately 7.3 per cent in the existing prices announced by them has come as a sigh of relief. This is the fourth time a cut in ATF has been done and it is expected that low-cost carriers (LCCs) will make the most of it by reducing the cost of seat reservation. The chief operating officer (COO) of SpiceJet said that the load factor was around 86 per cent because of festivity season, backed by heavy discounts. However, a further fall in the prices will certainly increase SpiceJet booking in the coming months.
As per reports, the jet fuel rate for Delhi is approximately INR 62537.93 per kilolitre after reduction of INR 4987.70. The ATF in Mumbai is comparative high and stands at INR 64414.98 per kilolitre. Similarly, it varies with different states because of difference in the taxation policies. Cheaper procurement cost due to declining international oil prices led to reduction in price. As per industry experts, 40 per cent of the cost seat reservation with airlines is constituted by jet fuel. It is expected that India-based airlines may reduce tickets prices and Jet Airways, Air India, GoAir and IndiGo booking can increase in the following months.
The cost aviation turbine fuel (ATF) is extremely high in India as compared to other parts of the world. In order to provide a platform for new entrants and motivate existing player, respective authorities are making efforts to bring it down. A reduction of approximately 7.3 per cent in the existing prices announced by them has come as a sigh of relief. This is the fourth time a cut in ATF has been done and it is expected that low-cost carriers (LCCs) will make the most of it by reducing the cost of seat reservation. The chief operating officer (COO) of SpiceJet said that the load factor was around 86 per cent because of festivity season, backed by heavy discounts. However, a further fall in the prices will certainly increase SpiceJet booking in the coming months.
As per reports, the jet fuel rate for Delhi is approximately INR 62537.93 per kilolitre after reduction of INR 4987.70. The ATF in Mumbai is comparative high and stands at INR 64414.98 per kilolitre. Similarly, it varies with different states because of difference in the taxation policies. Cheaper procurement cost due to declining international oil prices led to reduction in price. As per industry experts, 40 per cent of the cost seat reservation with airlines is constituted by jet fuel. It is expected that India-based airlines may reduce tickets prices and Jet Airways, Air India, GoAir and IndiGo booking can increase in the following months.
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