MUMBAI: Air passengers are unlikely to get the benefit of 4.3 per cent
reduction in Aviation Turbine Fuel, announced by state-run oil
companies on Thursday as several major airlines said the move would
not mitigate their losses in any manner.
"There is no question of a roll-back on fuel surcharge," budget
airline SpiceJet Chief Operating Officer Samyukth Sridharan told PTI
here.
Fuel prices have shot up by nearly 50 per cent in the last three
months and a marginal reduction of 3-4 percent would not make any
difference, Sridharan said.
The SpiceJet official said that even when the oil companies had
revised their ATF prices the last time, SpiceJet had not increased its
fares.
Vijay Mallya-spearheaded Kingfisher Airlines said that it was studying
the impact and would shortly arrive at a decision.
"We are studying the impact of the just announced reduction in ATF
prices and will reach a conclusion shortly," its spokesperson said.
Other private airline, Jet Airways, too maintained a similar stand
saying it was too early to take a view on the matter.
"We are studying the issue," a Jet Airways spokesperson said.
Following a five per cent cut in customs duty on ATF by the government
public sector oil companies had announced a reduction of Rs 3,239 per
kilolitre in ATF prices.
ATF price for foreign airlines, that are not subject to sales tax, has
been reduced to 1,193.99 dollars per kl from 1,248.32 dollars per kl
in Delhi.
In Mumbai, the price has been cut to 1,187.32 dollars per kl from
1241.77 dollars
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