Mumbai: The reduction in aviation turbine fuel (ATF) prices may not immediately translate into lower fares for Indian flyers as carriers will focus on reducing liabilities while cashing in on the upcoming holiday season.
Riding on the back of a steady fall in international crude prices, state-owned oil marketing firms have reduced the ATF price by 4.1 per cent to ?59,943 a kilolitre from December 1.
“Many airlines are reeling under carry-forward losses and liabilities towards employees, lessors, lenders and suppliers. ATF prices in India will reduce with a lag effect since PSU oil companies may have contracted current supplies at a higher price. There is a risk that the downward trend in crude prices may reverse soon. So, we do not anticipate a significant reduction in air-fares,” said Amber Dubey, Partner and India Head of Aerospace and Defence at global consultancy KPMG.
01/12/14 Adith CHarlie/The Hindu
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Riding on the back of a steady fall in international crude prices, state-owned oil marketing firms have reduced the ATF price by 4.1 per cent to ?59,943 a kilolitre from December 1.
“Many airlines are reeling under carry-forward losses and liabilities towards employees, lessors, lenders and suppliers. ATF prices in India will reduce with a lag effect since PSU oil companies may have contracted current supplies at a higher price. There is a risk that the downward trend in crude prices may reverse soon. So, we do not anticipate a significant reduction in air-fares,” said Amber Dubey, Partner and India Head of Aerospace and Defence at global consultancy KPMG.
01/12/14 Adith CHarlie/The Hindu
