Air fares to fall from Jan: Patel

New Delhi: After playing Santa to airlines, civil aviation minister Praful Patel is promising a happier new year to passengers firmly grounded by high air fares. Patel on Wednesday said fares would come down from "January onwards" as airline will begin passing on the benefit of cheaper jet fuel. Fares have risen by 30% to 50% in the last few months.
"Things should stabilise in another month or so and we are trying for rationalisation of taxes on fuel. Airlines, both full service and low cost, are going to reduce fares from next year beginning," Patel told TOI. He, however, did not indicate the likely percentage of fare fall.
The ministry is going to push for more relief for the airline industry before the PM-appointed panel that's headed by the Cabinet secretary when it meets next Tuesday. The issue of rationalisation of taxes on jet fuel is likely to top the agenda as jet fuel prices in India are still among the highest in the world.
In the past few weeks, airlines got relief from lowering of fuel prices and being allowed to pay oil dues of nearly Rs 3,000 crore in instalments. However, as soon as this relief was granted, the industry responded by levying steep transaction fee of Rs 350 and Rs 500 on each domestic tickets and between Rs 1,200 and Rs 10,000 on international ones. This amount would be kept by the airline or agent, whoever sells the ticket.
13/11/08 Saurabh Sinha/Times of India

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Categories: Indian Aviation- In General Nov 2008