Mumbai: Responding to a statement by finance minister P Chidambaram that a bill could be introduced in Parliament in its forthcoming session aimed at bringing aviation turbine fuel (ATF) under the Declared Goods category, Kingfisher Airlines chairman Vijay Mallya said Monday the carrier would "immediately reduce airfares" once ATF is accorded such status.
A statement from the airline the carrier would reduce airfares across the board as soon as the declared goods classification is approved for ATF.
With a Declared Goods status ATF will attract a uniform sales tax of just four per cent across the country. Currently faced with a huge downturn, such a status will provide huge relief to an industry currently reeling under high costs. "This long-awaited initiative will stabilise the Indian aviation industry and provide the much-needed financial stability once and for all," Mallya said.
The airline also said it believed it could make travel affordable to all Indians from different socio-economic classes. "Kingfisher believes that air-traffic potential in rural India can be stimulated apart from metro travel where industry is cutting back on travel expenditure."
Mallya also said Kingfisher would "not hesitate" to connect towns in rural India which lack connectivity despite airport infrastructure being available. "All such initiatives will generate additional employment and no job losses," the statement said.