But he did noy specify the quantum by which fares would come down. "The current low prices of Air Turbine Fuel (ATF) allows Kingfisher to pursue an opportunity to significantly increase market share by offering the fine five star flying experience at reduced fares", Mallya said.
Kingfisher had earlier said that it will cut air fares only if the government classifies ATF ont the 'Declared Goods' category. Jet Airlines, one of the other private airlines also was of the same stand.
Airlines across the nation is urging the government to delcare ATF in the 'Declared Goods' category. Under this category, there will be a uniform 4 pc sales tax on air fuel all over India. The proposal which is now before the Indian Parliament is likely to face opposition from different states as uniform taxation would cause revenue loss to them.
At present sale tax varies from 4 pc to 32 pc, and accounts for over 35 pc of airlines operational cost. In the last four months ATF fares witnessed a sharp decline. After this some airlines earlier in Dec reduced the fuel surcharge between Rs 200 and Rs 400, but they did not touch the basic fare.
OneIndia News (With inputs from Agencies)