Air India Cut Air Fares

Cochin, India, Jul. 11 2002 (INS News) -- The Union Minister of State for Civil Aviation, Syed Shahnawaz Hussain, announced a cut in the Air-India fares from Kerala to various Gulf destinations.

Air-India had hiked the Gulf fare six months back. On the basis of allegations from all corners about Air India's high tariff to the Gulf sector, the government was reconsidering the decision, Sayeed Shahnawaz said.

The Civil Aviation move will help passengers save between Rs 725 and Rs 1,000 on these flights. Coupled with the 5 to 6 per cent discount normally offered by various travel agencies, the net effect of the Centre's gesture would help Gulf-bound passenger save between Rs 1,500 and Rs 2,500.

The fares to Baharine and Saudi Arabias have been reduced by 5 percent. A 7.5 percent cut has been announced in the Kuwait sector.

The civil Aviation ministry would be able to extend a better deal to the Kerala passengers, only if the Kerala Government takes a decision on the sales tax on aviation turbine fuel (ATF). Kerala state charges the highest sales tax of 39.1 per cent in the country. This high tax system will hamper the interests of a state, which has great importance as a tourist centre. Kerala State Should reduce the Sales tax Like other state Andhra Pradesh,in india, which charges only 4 percent he said.

The Minister said he has communicated to Kerala State Chief Minister A K Antony on this regard.At present various airlines are filling their aircraft from other airports like Hyderabad. If the Kerala Government also reduces the Sales Tax, on ATF,this will help the air lines save a lot on fuel and the benefit can be passed on passengers,which enable an increase in operations to Kerala. he added.

-- Mohamed Ansif - Correspondent in Cochin, India
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