Private airlines unlikely to cut fares during peak season

Mumbai: Air travellers will have to wait till February before private sector carriers cut fares, which could happen earlier only if the government reduces sales tax on jet fuel.
Though National Aviation Co. of India Ltd, or Nacil, that runs Air India, has decreased fuel surcharge by Rs400, carriers that include Jet Airways (India) Ltd, Kingfisher Airlines Ltd, Paramount Airways Ltd, Interglobe Aviation Pvt. Ltd, SpiceJet Ltd and GoAirlines (India) Pvt. Ltd are unlikely to follow suit. Interglobe Aviation runs IndiGo and GoAirlines runs low-fare carrier GoAir.
This is despite a 6% reduction in prices of jet fuel, which accounts for 45% to 55% of the operating cost of airline firms.
“We will continue to stimulate the market with attractive discount schemes and have no immediate plans to reduce fuel surcharge,” said a senior executive with a Mumbai-based private airline on condition of anonymity, considering the sensitivity of the issue.
State-owned Air India has reduced fuel surcharge for domestic flights by an average of 14.5%, citing lower fuel prices since September.
Kingfisher Airlines’ executive vice-president, Hitesh Patel, declined to comment but said his chairman “has indicated a fare cut following government’s support on ATF (aviation turbine fuel) prices cut.”
04/12/08 P.R. Sanjai/LIvemint

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Categories: Indian Aviation- In General Dec 2008