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`The price of fuel has been fluctuating for the past few months. While fuel prices rose by about 1.2 per cent in May, they have fallen by about the same amount this month. So, how does any one pass on the benefit to the passenger,' an airline executive argued

New Delhi June 1 The fuel surcharge charged by the domestic airline sector will remain at the current level despite the oil companies reducing aviation turbine fuel (ATF) prices.

On Friday, the oil companies announced a reduction ranging from Rs 675 to Rs 768 in the per kilolitre price of ATF being sold to domestic airlines in the four major metros in June.

The airlines would be charged Rs 36,746.53 per kilolitre of ATF uplifted in Delhi, down from Rs 37,421.94 charged in May. Similarly, in Chennai, airlines will pay Rs 42,263.34 per kilolitre during the month (Rs 43,020.79).

Airlines argue that it was not possible to reduce the fuel surcharge on the basis of monthly fluctuation in ATF prices. Currently, the fuel surcharge stands at Rs 900.

"We have not passed on the entire impact of the rise in fuel prices to the passengers, so where is the question of reducing the surcharge now," the Managing Director of Paramount Airways, Mr M. Thiagarajan, said.

The Chief Executive Officer of SpiceJet, Mr Siddhantha Sharma, said that the airline increased the fuel surcharge when fuel prices rose sharply and the cumulative financial impact of fuel alone was more than 5 per cent on the operators.

"The price of fuel has been fluctuating for the past few months. While fuel prices rose by about 1.2 per cent in May, they have fallen by about the same amount this month. So, how does any one pass on the benefit to the passenger," an airline executive argued.

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