Airlines should cut fares: Praful Patel

With jet fuel prices going down, the government today asked airlines to cut fares to boost falling passenger traffic.

"When ATF (aviation turbine fuel) prices have come down, so should the fares," Civil Aviation Minister Praful Patel told reporters here.

"In the past when airlines were in difficulty, we have helped them in giving an extra line of credit, staggered repayment of their dues and abolished customs duty on ATF.

"It is now imperative for the airlines to respond to the situation, and reduce fares," the Minister said in reply to a question.

Exuding confidence that the fares would come down in the coming weeks, Patel said Air India officials had informed him that they were working on reducing air fares in the near future.

This is the third time in four weeks that the Civil Aviation Minister has asked air carriers, including Jet Airways and Kingfisher Airlines, to cut fares in response to the government's support to the industry.

State-run oil companies yesterday slashed jet fuel prices by over 11 per cent, the seventh straight cut since the price soared to an all-time high of Rs 71,028.26 per kl (in Delhi) in August.

Apart from abolishing congestion charges of Rs 150 and reducing the high fuel surcharge by Rs 400, the carriers have remained non-committal on cutting fares.

Jet fuel accounts for about half the operation costs of airlines in the country.