'Airlines unlikely to slash fares'

New Delhi: Indian airline operators are unlikely to reduce fares immediately following another cut in jet fuel prices announced on Saturday, with the industry saying the earlier price cuts have failed to raise demand for air travel.
The state-run fuel retailers slashed air turbine fuel (ATF) rates by a further seven per cent with effect from midnight tonight, the 11th cut since last September. But officials of most of the airlines said there is no decision as yet on lowering air fares.
Industry sources said most carriers are still recovering from the "huge losses" they incurred through the last year due to unprecedented rise in global crude prices. Observing that domestic fares are fixed on the basis of several factors like demand and competitive environment, they said lowering of ticket prices in January did not raise passenger traffic as was being anticipated.
Despite the price cuts, the airlines in late January suddenly withdrew low-fare segments and promotional fares, inviting criticism for a possible cartelisation.
28/02/09 ZeeNews

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Categories: Indian Aviation- In General Mar 2009