The government's decision to abolish taxes on air travel and reduce excise duty on aviation turbine fuel on Thursday had its immediate impact on air travel with all major airlines slashing their fares from Friday, taking them below first class AC train fares.

The decision to reduce excise duty on ATF from 16 to 8 per cent and abolition of inland air travel tax as well as foreign travel tax of Rs 500 per passenger was welcomed by the entire aviation industry as also Civil Aviation Minister Rajiv Pratap Rudy.

Officials of Indian Airlines, Jet Airways and Air Sahara said the abolition of IATT would immediately be implemented and the passengers would get the benefit from Friday. The
IATT constitutes 15 per cent of the fares.

Spokespersons of IA and Jet Airways said the apex fares would also be reduced from tomorrow with the abolition of the IATT, taking them below the First Class air-conditioned fares.