No rollback of fuel surcharge, say airlines

Mumbai: Air passengers are unlikely to get the benefit of 4.3% reduction in Aviation Turbine Fuel, announced by state-run oil companies on Thursday as several major airlines said that the move would not mitigate their losses in any manner.
"There is no question of a rollback on surcharge," budget airline SpiceJet chief operating officer Samyukth Sridharan said. He said fuel prices have shot up by nearly 50% in the last three months and a marginal reduction of 3-4% would not make any difference.
The SpiceJet official said that even when the oil companies had revised their ATF prices the last time, SpiceJet had not increased its fares.
Vijay Mallya-spearheaded Kingfisher Airlines said it was studying the impact and would shortly arrive at a decision. "We are studying the impact of the just announced reduction in ATF prices and will reach a conclusion shortly," its spokesperson said.
Other private airline, Jet Airways, too maintained a similar stand saying it was too early to take a view on the matter. "We are studying the issue," a Jet Airways spokesperson said.
Following a 5% cut in customs duty on Aviation Turbine Fuel by the government public sector oil companies had announced a reduction of Rs 3,239 per kl in ATF prices. However, airline officials in private admit that there would not be any reduction in the fuel surcharge at all.
06/06/08 PTI/Times of India

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Categories: Indian Aviation- In General Jun 2008