Airlines unlikely to cut fares after fall in fuel prices
The Indian carriers are unlikely to take any immediate steps to lower fuel surcharges as oil companies slashed jet fuel prices by 16 per cent from Monday.
By PTI |
NEW DELHI : The Indian carriers are unlikely to take any immediate steps to lower fuel surcharges as oil companies slashed jet fuel prices by 16 per cent from Monday.
"For the time being we do not want to change our pricing and surcharge strategy," Jet Airways CEO Wolfgang Prock-Schauer told media.
He said "we want to see medium term development of ATF prices before we take a call. Even with this decrease, prices are significantly above the levels compared to six months ago."
"What the industry needs now is that fuel prices remain at the same level for at least two months," Spice Jet Chief Financial Officer Parathaswarathy Basu said.
"We are studying the situation" was the response of a Kingfisher Airlines official.
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In the biggest ever cut in jet fuel prices, state-run oil firms slashed aviation turbine fuel (ATF) prices by over 16 per cent in line with softening international oil prices. The cut of Rs 11,784 per kilolitre is the single biggest reduction in the fuel price.
Jet fuel prices in Delhi, which has the country's second busiest airport, have been cut by Rs 11,378.19 per kl to Rs 59,650.07 with effect from midnight tonight.
Most of the airlines had raised airfares after the June 1 hike by over 18 per cent, or Rs 10,839.16 per kl. But they did not slash fares when oil companies cut fuel prices by over Rs 3,000 per kl on June 5.
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