Jet fuel price cuts will positively affect air ticket prices: Caab chairman
The Bangladesh Energy Regulatory Commission cut Jet A-1 fuel prices for airlines, effective from today
Civil Aviation Authority of Bangladesh (Caab) Chairman Air Vice Marshal Mohammad Monjur Kabir Bhuiyan has said the jet fuel price cut would have a positive impact on air ticket price.
"Definitely the operational cost will be decreased for airlines. We expect that the ticket price will be decreased," Caab chairman said today (14 May) while talking with reporters at his office.
The Bangladesh Energy Regulatory Commission (Berc) has reduced the jet fuel Jet A-1 price for domestic and international airlines, effective from today.
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For domestic carriers, the price of Jet A-1 fuel has been lowered by Tk17.43 per litre — dropping from Tk111 to Tk93.57.
For international airlines, the price has been cut by $0.1434 per litre, reducing the rate from $0.7500 to $0.6066.
Aviation operators said around 40%-50% of the costs of airlines are related to Jet fuel.
Commenting on the impact of the price cut, Imran Asif, CEO of Air Astra, told TBS, "The operational cost would reduce, consequently the operational losses would be lesser too. But sustainability of the industry would depend on much more than fuel - on reduction of surcharges, ground handling costs, dollar rates, to name a few."
