Moneycontrol PRO
Black Friday Sale
Black Friday Sale
HomeNewsBusinessAviation Turbine Fuel price cut by 14% from March 21: Report

Aviation Turbine Fuel price cut by 14% from March 21: Report

The move will bring some relief to airlines, which are suffering from a weak demand because of COVID-19

March 21, 2020 / 13:41 IST

The price of Aviation Turbine Fuel (ATF) will be reduced by 14 percent from March 21, sources told CNBC-TV18.

As of March 1, one kilolitre of ATF was available in Delhi at Rs 56,859.01 and in Mumbai for Rs 56,400.74. Similarly, the price of one kilolitre ATF in Chennai was at Rs 58,875.63 and Rs 62,160. 48 in Kolkata. These prices are set to be reduced by nearly 14 percent from March 21 onwards.

Conventionally, prices of ATF are revised on the first of every month. But, airlines have been appealing to the government to revise prices every week so that they can benefit from the decline in global prices of crude oil.

ATF comprises the largest spend on the balance sheet of Indian airlines, constituting almost 35-40 percent of the total expenditure.

The move will bring some relief to airlines, which are suffering from a weak demand because of the coronavirus (COVID-19) pandemic. To curtail the spread, most domestic carriers have suspended international operations as a result of visa advisories and other travel restrictions.

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

Consequently, revenues have taken a hit and airlines are operating on a curtailed schedule. On March 20, budget carrier IndiGo had announced that it will reduce its domestic network by 25 percent.

Moneycontrol News
first published: Mar 21, 2020 01:36 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347