Jet Airways and Air India has announced to cut their air fares and revised rates will be in effect from 1st January’09 in which Jet airways will cut the fare up to 40% on domestic routes. The air fares will go on like this Rs 2000 for Mumbai-Delhi flight, Rs 4065 for Mumbai-Kolkata route, Rs 1220 for Bangalore-Mumbai and as low as Rs 500 for Mumbai-Ahmadabad flight. Taxes of Rs 3,500 are also to be included on each ticket. This means that the total cost of an air ticket will be with taxes.
Another airline Kingfisher airline has also stated that fare cut will be implemented by New Year. The Indian air operators are reluctant to revise air fares despite the fall in fuel prices. The demand of aviation turbine fuel under the declared goods category by Indian air operators will bring down the sales tax from an average of 32% at other airports to a uniform 4% and due to this Indian aviation ministry has forced the major airline companies to go for fare cuts.
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