Kingfisher Airlines to announce the Fare reduction on New Year

It is a happy news to the Indian air travellers that most of the airlines in india are going to reduce their airfares. Followed by Air India and Jet Airways the India's leading private air-carrier Kingfisher Airlines would cut fares across its network from January 1, 2009.

Vijay Mallya, chairman of Kingfisher Airlines, while making the announcement, did not specify the actual percentage of cut in fares. He said the current low prices of Air Turbine Fuel or ATF had made it possible to offer five-star flying at low fares.

Kingfisher had earlier demanded that the government classify ATF in the declared goods category before the airline reduced its fares. The classification would enable a uniform 4% sales tax on ATF across the country and the proposal is now before Parliament.

Many state governments are against this as it could decrease their revenues. Currently, the sales tax varies from 4% to 32% and accounts for over 35% of airlines' operational cost