ATF price cut today, but no cheer for travellers

Mumbai: In what could bring cheer to the airline industry for the first time in eight months, aviation turbine fuel (ATF) prices are set to drop 6-7% (between Rs 2,500 and Rs 3,500 per kilolitre). Oil marketing companies are likely to announce the price cut on Saturday.
However, flying in the domestic skies may not get any cheaper. Despite the proposed reduction in ATF prices, airlines—both low cost carriers and full service carriers—don’t intend dropping fares as they hope to recoup the heavy losses suffered earlier.
No reduction is planned in fuel surcharge which is currently at Rs 750, airlines sources said.
Industry experts are of the view that the lower fares offered by domestic carriers are already exerting pressure on the yields. Hence, a reduction in ATF prices sans no reduction in fuel surcharge would provide the required respite for airlines.
29/09/06 Financial Express

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