Indian Airlines would save more than Rs 60 crore (Rs 600 million) per annum by way of reduction in excise duty on aviation turbine fuel, chairman Sunil Arora said on Thursday.

He also said that abolition of inland air travel tax would directly benefit domestic passengers who would enjoy commensurate reduction in airfares.

Welcoming the relief measures announced by the government, Arora said the abolition of IATT would boost air traffic, which had started growing during the last six months due to increased domestic activity.

Air-India's public relations director Jitender Bhargava said the airline stood to gain around Rs 3 crore (Rs 30 million) on the domestic sector while another Rs 2-3 crore (Rs 20-Rs 30 million) by way of IATT for crew members who travel within India for positioning to operate international flights.

He said: "We welcome the concessions but we would have been happier if the issue of sales tax was also addressed so as to allow us a level playing field."