Time to slash air fares: Praful Patel to Aviation Industry
New Delhi, Dec 16: Specifying that the Government had done enough for the aviation industry, in times of trouble, the Aviation Minister Praful Patel on Tuesday, Dec 16 put pressure on private carriers to cut fares. "It is imperative that air fares be cut as the Aviation Turbine Fuel (ATF) prices have been slashed," Praful Patel said.
State-run
oil
companies
on
Monday,
Dec
15
cut
jet
fuel
or
ATF
prices
by
over
11
per
cent.
ATF
in
Delhi
has
been
cut
by
Rs
4,208.37
to
Rs
32,691.28
per
kilolitre.
This
was
the
seventh
straight
cut
in
jet
fuel
prices
since
price
soared
to
an
all
time
high
of
Rs
71,028.26
per
kl
(in
Delhi)
in
Aug.
With
international
oil
prices
cooling
since,
the
fuel
prices
have
been
slashed
in
subsequent
months.
Aviation secretary M Madhavan Nambiar on Monday, Dec 15 met airline heads and asked them to take steps to cope up with the falling demand and get people back into planes. The message was clear - go back to competitive fares.
Private players like Kingfisher have, in the past, linked cutting fares to demands for ATF to be termed a declared good so that a flat 4 per cent sales tax is levied on it across the country. But on Monday, Dec 15 airlines were clearly told that enough relief had come in the form of hugely cheaper ATF, with prices dipping to a three-year low.
Full service airlines - AI, Jet and Kingfisher - said they were as yet evaluating the impact of the latest ATF price cut. "We've just cut fuel surcharge by Rs 400. We'll take a call now on what to do next," said a Jet spokesperson.
OneIndia News