MUMBAI, May 17: Parity in the price of aviation turbine fuel (ATF) utilised by Indian Airlines (IA) on its international flights with that of Air India would have saved the domestic carrier a whopping Rs 100 crore in 1996-97, according to sources. This would have enabled IA to earn a surplus of nearly Rs 60 crore instead of a loss of more than Rs 40 crore estimated by the civil aviation ministry.

Currently, three slabs of ATF prices exist for airlines operating in India. While airlines operating within the country are charged at the rate of Rs 14,850 per kilolitre, international airlines operating from India pay only US $ 245.17 (Rs 8400) per kl.

However, IA is not allowed to take advantage of the lower rate for its international flights though the price charged - Rs 12,200 per kl of ATF is cheaper than the price billed for flights at home. Still IA pays 45 % more for ATF for its international flights unlike AI, IA officials said.

IA's annual fuel bill of around Rs 600 crore accounts for 30 % of its operating costs. Should ATF be made available to the airline at international prices, as mooted by the Kelkar committee, IA stands to save nearly Rs 250 crore on its fuel bills.

Indian Airlines which is far more profitable than Air India operates 200 flights a week to 17 stations in India's neighbourhood.

Though IA operates in 53 stations within the country, many of the routes like those in the North-East and in tourist centres are not profitable. These are mainly subsidised by the airline's earnings from its international operations and the trunk routes.

Incidentally, the parliamentary standing committee on transport and tourism recently asked the Centre to reduce the price of aviation turbine fuel so that it is closer to the international levels.

The panel's report which was tabled in parliament recently, pointed out that such a measure was necessary to prevent the domestic airlines, both in the private and public sector, from suffering heavy losses.