Lok Sabha Question No. 807 (UNSTARRED), answered on 2016-04-28
Subject: Impact of Reduction in ATF Prices on Airfare
Ministry: CIVIL AVIATION
Asked by: P. C. MOHAN, RAJAN BABURAO  VICHARE, G. HARI, M. B. RAJESH

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

:

UNSTARRED QUESTION NO. : 807 (Ta be answered on the April 2016) 28th

## IMPACT OF REDUCTION IN ATF PRICES ON AIRFARE

SHRI PC. MOHAN

SHRI G. HARI

.

SHRI MB. RAJESH

Will the Minister of CIVIL AVIATION

be pleased to state:-

.

- (a) whether due to a steep fall in crude oil in international market; the of Aviation Turbine Fuel (ATF) has been slashed to 11.7 by the oil marketing companies, if s0, the number of times prices of ATF has been reduced; rate and total amount of reduction; prices price
- the exorbitant airfare charged by the airline companies in India, if s0, the details thereof; bring
- (b) whether the Directorate General of Civil Aviation (DGCA) has taken any steps to
- (c) whether the Goverument would ensure that reduction in ATF prices which in turn reduces the operating cost of the airlines translate into reduction in airfares;
- (d) if whether the Government is having any proposal to include ATF in GST provisions to have uniform ATF cost throughout the country;
- (d) whether airfares for domestic and international travel are likely to be increased by two per cent; and
- (g) if s0, the reasons therefor and time by which the draft civil aviation policy is likely to be approved and implemented?

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION

(Dr Mahesh Sharma)

(a): Pricing of Aviation Turbine Fuel (ATF) is de-regulated. The Public Sector Oil Marketing Companies (OMCs) take appropriate decision on of these products in line with changes in the in international market and other market conditions. The of ATF (Rupees[Kl) in metro cities from April 01,2015 to April 01,2016 is at Annexure-I: price prices price

- (b) and (c): Air fares are not regulated the Govermment. Under the provision of prevailing regulation (Sub rule (1) of Rule 135 of the aircraft Rules, 1937), every air transport undertaking engaged in scheduled air services are required to establish tariff; having regard to all relevant factors; including the cost of operation; characteristics of services; reasonable profit and the generally prevailing tariff: The fares s0 established; are required to be displayed by the airlines on their websites in compliance of Sub Rule 02 of Rule 135, aircraft Rule 1937. Airlines remain compliant with to the regulations as long as the fare charged by them does not exceeds the fare structure displayed on their website. by
- (d) and (e): The information is being collected.
- (g): The Draft Civil Aviation Policy is at the stage of Inter-Ministerial consultations.

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## Previous Price of ATF in metro(Rupees/KI)#

| Month            | Delhi     | Kolkata    | Mumbai     | Chennai    |
|------------------|-----------|------------|------------|------------|
| April 0T,2016    |           | 47,094.08  |            | 44,82T.08  |
|                  | 38,785.46 | 43,893.53  | 38,425.94  | 41,459.29  |
| March 0T,2016    | 39,301.37 | 46,038.16  | 38,425.94  | 41,99T.65  |
| February 0T,2076 | 35,126.82 | 41,482.009 |            | 37,594.24  |
|                  | 39,892.32 | 46,368.94  | 39,009.02  | 42,718.64  |
| December OT,2015 | 44,320.32 |            | 43,450.52  |            |
|                  | 44,846.82 | 51,704.74  | 43,977.002 |            |
| November 0T,2075 | 43,04T.61 | 51,392.23  | 43,966.25  | 47,574.35  |
| October 0T,2015  |           |            |            | 47,858.56  |
|                  | 40,938.24 | 49,378.92  | 41,846.75  | 45,448.32  |
|                  | 46,407.36 |            |            |            |
|                  | 57,267.36 | 60,78T.87  | 52,592.75  | 56,522.06  |
| June             | 53,353.92 |            | 54,727.49  | 558,723.32 |
| May              | 49,609.84 | 59,122.8   | 50,844.743 | 54,779.66  |
|                  | 49,338    | 58,614     | 50,713     | 54,457     |