Analysts believe an overall 10-15 percent cuts in costs is likely for all take-offs from Delhi. This may be followed by similar news in Mumbai and Chennai.
In a major boost to the aviation industry, the Delhi government in its budget decided to cut jet fuel tax rate to a meagre 1 percent from the 25 percent. The move is aimed to boost the Centre's regional connectivity scheme.
Delhi Finance Minister Manish Sisodia said the tax cut on jet fuel or aviation fuel turbine (ATF) will be for all flights under the regional connectivity routes.
"This is a remarkable reform that will also boost the tourism industry. Hope there is no fine print in this reform," said aviation expert Kapil Kaul of CAPA.
— moneycontrol (@moneycontrolcom) March 8, 2017good news," said Sanjiv Bhasin of IIFL.
Around 60-66 percent of the entire traffic flow is between the metro cities, with Mumbai and Delhi being the highest, said Mayur Milak of Anand Rathi.Watch video for more.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.