The Hindu Business Line : Oil cos cut aviation fuel prices by 5.42%; fares unlikely to come down

Mumbai, Sept. 30 The Indian oil marketing companies have cut aviation turbine fuel (ATF) prices by 5.42 per cent on Tuesday. However, this is unlikely to result in any decrease in either fuel surcharges or basic fares offered by the Indian carriers.

Mr Samyukth Sridharan, Chief Commercial Officer of SpiceJet, said the airline is not considering any cut in fares at this point in time. “These kinds of ups and downs have been going on. We would like the prices to stabilise for sometime before we make any move.” Meanwhile, he also ruled out any hike in fares by the Delhi-based low-cost carrier in the light of the upcoming festive season.

Jet Airways’ CEO, Mr Wolfgang Prock-Schauer, also said, “The airline has no plans to change the fuel surcharge. Even with this slight decrease of ATF prices for October, they still remain around 50 per cent higher compared to one year ago.” Kingfisher Airlines spokesperson also ruled out any move to cut fares.

The ATF for October is going to cost Rs 58.48 a litre (Rs 61.83) in Mumbai.

In Delhi, it would be Rs 56.48 a litre (Rs 59.65).

For international airlines, the price has come down by 10.7 per cent. ATF for the same period would now cost them $962.95 a kilolitre ($1,078.83/kl) in Mumbai. In the Capital, it will cost $969.30 a kilolitre ($1,085.31/kl).

Last week, both full service carriers, Jet Airways and Kingfisher Airlines had announced that fares would go up in the upcoming festive season. The fares are likely to rise in the range of 5-10 per cent, starting Wednesday.

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