Airlines in no mood to reduce fares despite lower ATF prices

New Delhi: The cash-strapped airline industry is not yet ready to reduce airfares despite the cut in jet fuel prices today by another 12 per cent, saying that the heavy losses that accumulated during the past several months, when the prices peaked, were still to be recovered.
The impact of the cut will be evaluated before a decision is taken to pass on the benefits to the air traveller — this was the common refrain of most airline executives contacted for their reaction on the reduction in aviation turbine fuel prices, bringing them on a par with the price level of September 2007.
Air India Executive Director Jitendra Bhargava said, “We will wait and look at the economic viability before any decision on reducing fares,” Pointing out that the US dollar had appreciated significantly vis-a-vis the rupee, Bhargava said several major cost-heads of an airline were dollar-denominated.
A Kingfisher Airlines spokesperson said, “We will evaluate the impact and then take a view” on lowering the fares or the fuel surcharge.
16/11/08 Press Trust of India/Indian Express

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Categories: Indian Aviation- In General Nov 2008