The UB Group-owned Kingfisher Airlines has announced a 21 to 65% fare cut on various routes with effect from Jan 1.  

Kingfisher chairman and chief executive Vijay Mallya further informed, “The declining price of ATF (air turbine fuel) facilitates such consumer-benefiting initiatives that will also stimulate the industry. The rate cuts are consistent with our mission to aggressively pursue increase in market share and to deliver India's only five-star experience at highly competitive fares.”

The Kingfisher stated that airlines will offer major discounts to its usual corporate customer base and will offer new motivation programmes.

Mallya further added, “We will aggressively pursue sales and share and this will help sustain increased load factors in the shoulder season between February and April.”

Previous week, Kingfisher announced a variety of fare cuts without exactly specifying the quantum of cuts across sectors.

Earlier this week following downward review of ATF prices major competitors like Jet Airways and Air India announced cut in fare.

The single largest component of an airline’s operating costs has formed by ATF and has dropped by more than 50 %since August.

The fuel at present financial records for less than 40 % of an airline's operational costs compared to 50 % around three months before.

The ministry of civil aviation has created constant appeals to airlines to pass on the benefits of these cost cuts to passengers to stimulate air travel, which has seen a decline this year.