Will air fares shoot up?
Most airlines in the country said they have yet to decide on any reduction in fares, even though prices of jet fuel are set to fall with the government's decision on Wednesday to cut customs duty on it from 10 per cent to 5 per cent.
“We will wait and watch," a spokesman at Air India said. A Kingfisher Airlines official, who spoke on condition of anonymity, said his carrier has no plan as of now to reduce fares
Airlines, which have incurred substantial losses due to skyrocketing oil prices, are not exactly elated over the government’s decision. At a meeting with civil aviation ministry on Wednesday, they had demanded a 50 per cent reduction in price of aviation turbine fuel, or ATF.
That demand came as oil-marketing companies raised ATF prices by 18.5 per cent, forcing the airlines to raise fuel surcharge by Rs 300 to Rs 550.