Friday, December 5, 2008

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. 300, from Rs. 2,250 to Rs. 1,950.
  • For routes over 750 kms, the fuel surcharge is reduced by Rs. 200, from Rs. 2,900 to Rs. 2,700.
Similarly Jet Airways has also reduced the fuel surcharge.
  • For routes under 750 kms, the fuel surcharge is reduced by Rs. 400, from Rs. 2,350 to Rs. 1,950.
  • For routes over 750 kms, the fuel surcharge is reduced by Rs. 400, from Rs. 3,100 to Rs. 2,700.
While these reductions are welcome, I am wondering why is the reduction not greater on the longer distance routes. With massive reduction in aviation turbine fuel prices, wouldn't the savings to airlines be greater ?

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