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New Delhi, Business Bureau. The country’s major airlines have received a big relief from the government and oil companies on the international front. Public sector oil marketing companies (OMCs) have announced a huge 27 percent reduction in the prices of Aviation Turbine Fuel (ATF) used for international flights. After this historic decision, there has been a huge reduction of jet fuel prices in international flights by $ 400 per kiloliter. After this reduction, fuel prices for international flights have now come down to almost the same level as domestic flights. However, there is still no relief news for domestic passengers and airlines as OMCs have kept domestic jet fuel prices unchanged for the second consecutive month. Airlines were gasping due to rising operating costs, 100 flights were being canceled every day. The skyrocketing prices of aircraft fuel had broken the back of Indian airlines companies. The situation had worsened to such an extent that due to rising operational costs, big airlines like Air India had to cancel up to 100 flights daily. The biggest impact of the fuel crisis was seen on international routes going to Europe, North America, Australia and Singapore. On many long-haul routes, airlines were struggling to recover even their basic operating costs. The companies had warned that if fuel prices did not come down, they would be forced to make even bigger cuts in the number of flights. In such a situation, this latest reduction of 27% will prove to be a lifeline for international flights. Airlines had sought postponement amid West Asia crisis, there was a shock in May. Recall that during the announcement made in May last month, while domestic ATF prices were stable, the price of jet fuel for international flights was directly increased by $ 76.55 per kiloliter to $ 1,511.86 per kiloliter. Earlier, major Indian airlines had collectively requested state-run oil refineries to postpone any increase in jet fuel prices for domestic flights until the ongoing war and tension in the Middle East ends. Amidst this pressure, the Central Government had decided to limit the increase in domestic ATF prices to a maximum of 25 percent in the month of April. State governments extended their hands to reduce VAT, it reduced from 18% to 7% in Maharashtra. To rescue the aviation sector from the crisis, along with the central as well as state governments, they have also started cutting taxes at their level. The state governments of Delhi and Maharashtra have significantly reduced the value added tax (VAT) on ATF. Big step of Maharashtra Government: Maharashtra Government has directly reduced the VAT on aviation fuel from the existing 18% to 7% with a huge reduction. This huge tax relief will be fully effective till November 14, which will provide huge financial relief to airlines flying from busy airports like Mumbai. Amendment in export duty of petrol, diesel and ATF. In this connection, the Central Government has also issued an official notification of the revised rates. According to the new government order, the rate of Special Additional Excise Duty (SAED) on the export of petrol from the country has been fixed at Rs 1.5 per liter, while the RIC has been kept at zero. Similarly, the duty on export of diesel will be Rs 13.5 per liter and on export of ATF (jet fuel) only Rs 9.5 per liter will be applicable Special Additional Excise Duty (SAED). Threat of reduction in domestic flights remains, 3 months reduction possible from June 1. Despite this big relief received at the international level, the difficulties of passengers traveling by domestic air within India are not going to reduce. According to reports, in the absence of any reduction in domestic prices of Aviation Turbine Fuel (ATF), the country’s two largest airlines, Air India and IndiGo, may drastically cut the number of their domestic flights from June 1. This cut is likely to continue for the next three months to compensate for the financial loss caused by high fuel prices. In such a situation, air tickets within the country may become more expensive in the coming days.