The Hindu Business Line : Patel asks airlines to cut fares

NEW DELHI: Civil Aviation Minister Mr Praful Patel on Saturday asked air carriers including, Jet Airways and Kingfisher Airlines, to cut fares in response to the government's support to the industry, though Jet said it would do so only after becoming pro fitable.

“Perceptionally, the government is trying to help you (aviation industry) to tide over the situation...It has taken the onus to help you. Now with the fuel prices coming down, you must match the perception that fares are coming down,” Mr Patel said while addressing the Hindustan Times Leadership Summit.

He said the government also has a responsibility towards people and if there were no reciprocal gestures from the airlines to the steps taken by it to support them, it would fail in the public eyes. Responding to the call by the minister, Jet Airways Ch airman Mr Naresh Goyal said: “We have a responsibility to our shareholders, we need to protect our bottomline. I certainly would not like to close down the company.

“We will do whatever the government wants us to do, provided we are profitable.” The Ministry had brokered a deal in October between carriers, who were reeling under heavy aviation turbine fuel costs, and oil marketing PSUs to extend credit period and cl ear dues amounting about Rs 3,000 crore by March next year.

Mr Patel, when queried if he would ask state-owned carrier Air India to cut prices, said: “We have never dictated what Air India (AI) should do in terms of pricing or routes or capacity, but AI as a responsible government carrier will also understand tha t if the oil prices are coming down so should the fares.” - PTI

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