Patel to meet carriers to pitch for low fares

New Delhi: Concerned over rising jet fuel prices, the Civil Aviation Ministry would soon hold a meeting with all airlines to find ways to prevent transfer of the entire burden on to air travellers.
Announcing this here, Civil Aviation Minister Praful Patel also renewed his appeal to state governments to follow Andhra Pradesh and Kerala to reduce sales tax on aviation turbine fuel to four per cent.
"We are very concerned about the rise in fuel prices. It is a moment of serious introspection by states as well as the Centre as it is impacting air travel in a big way, as also the financial health of the sector," he said.
While jet fuel costs Rs 32,000 per kilolitre in Singapore, the price in India was over Rs 61,000. For global airlines, fuel cost accounted for 15-20 per cent of the total operating cost compared with 40 per cent for Indian carriers.
ATF prices have risen about six times in the past six months while intense competition had led the airlines to maintain prices at low levels, even though they hiked fuel surcharge.
09/05/08 PTI/The Hindu

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Categories: Indian Aviation- In General May 2008