Date:02/12/2008 URL: http://www.thehindu.com/2008/12/02/stories/2008120254100400.htm

Kerala - Thiruvananthapuram

AI domestic flights to be cheaper

Staff reporter

THIRUVANANTHAPURAM: Air India, the national carrier, has reduced fuel surcharge for all domestic sector flights by Rs.400 with effect from Tuesday.

The fuel-surcharge is Rs.2,350 now for sectors below 750 km and Rs.3,100 for sectors over 750 km. The average reduction in fuel surcharge will be about 14.5 per cent, according to Air India.

The reduced fuel surcharge will come into effect for all sales made on or after December 2. The decision comes in the wake of the reduction in the price of ATF.

Air India Chairman and Managing Director Air India Raghu Menon, in a release, said “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.” While the airlines are no doubt going through difficult times, he said it is necessary for AI to react positively to pass on some concession to passengers and generate demand.