Air India likely to announce fare cut

November 24th, 2008 - 6:31 pm ICT by IANS  

New Delhi, Nov 24 (IANS) India’s leading carrier Air India is considering a fare cut and is likely to make an announcement soon following a request from civil aviation minister Praful Patel Saturday.An airline official said Air India could cut fare by 10-12 percent some time in December following a cut in fuel surcharge.

“The fare cut would be done taking into account losses and expenses. You can expect an announcement soon,” an airline official told IANS.

Patel, at the Hindustan Times Leadership Summit here Nov 22, had said airlines ought to cut fares because of reduction in aviation turbine fuel (ATF) prices.

“Now fuel prices have come down. You must match it with the perception or else you’ll lose people’s sympathy,” Patel, flanked by Jet Airways chairman Naresh Goyal and Kingfisher Airlines chief Vijay Mallya, had said.

Jet and Kingfisher have decided not to cut fares at the moment.

The move comes after state-run oil companies Nov 15 slashed ATF prices by 12 percent, bringing down the price to Rs.39,767 per kilolitre compared with Rs.41,417 per kilolitre.

With this reduction, the ATF or jet fuel prices are at par with levels that prevailed in September last year.

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