Domestic airline meet inconclusive on issue of fare hike

New Delhi: The domestic airline industry is yet to settle its mind on the issue of raising prices in tandem with the hike in prices of aviation turbine fuel (ATF) announced by oil marketing companies on Monday.

According to sources, some airlines feel that the industry should absorb the latest increase, which average about 6 per cent across the country, as last month there was no roll back in airfares after the Government halved the customs duty on ATF. This point of view does not find favour with others, however.

Speaking to media after a meeting of the Federation of Indian Airlines (FIA) here on Tuesday, chief executive officer, Jet Airways, Wolfgang Prock-Schaeur said, ''No decision was taken today. A decision, if any, could be taken in the next few days''.

Late on Monday, ATF prices went up between 4.3 per cent and 6.5 per cent in the four major metros. ATF costs constitute 45-50 per cent of overall operating costs of most domestic airlines.

It was also revealed that the FIA meeting also discussed issues relating to charges being levied at various airports around the country and the need to approach the ministry of civil aviation to get some relief on the high rates being charged.

The meeting was attended by the president and chief executive officer, IndiGo Airlines, Bruce Ashby, Air Deccan's officiating chief executive officer, Ramki Sundaram,  commercial director, Air India, Ms Anita Khurana and executive chairman, SpiceJet, Siddhanta Sharma, among others.