No immediate reduction in airfares inspite of softening ATF prices: Patel
11 Sep 2008
New Delhi: Civil aviation minister, Praful Patel, has ruled out any eventuality of an immediate drop in airfares even as global jet fuel prices are dipping and some major international carriers are exerting pressure on Indian carriers by easing their fuel surcharges.
"We hope that it (reduction in jet fuel prices) will have an effect on airfares. But to say that this will happen immediately will not be correct," Patel said on the sidelines of an exhibition on airports here.
Even if prices stabilised at prevailing levels, Patel said, it would take Indian carriers some more time to come out of the red and pass on benefits to travellers. The minster pointed out that unprecedented rise in price of aviation turbine fuel had resulted in domestic carriers suffering major losses over the past two years.
Hard on the heels of Singapore Airlines announcing a reduction of $100-110 in fuel surcharges, another global carrier Lufthansa has announced a reduction of up to $100 in fuel surcharges for a return ticket from India to the US or Canada on its flights.
Reportedly, the entire aviation industry suffered a cumulative loss of about Rs4,000 crore over the previous year and is estimated to report a doubling of it this year.