Surcharge cut may not benefit passengers soon

New Delhi: Following a reduction in the price of aviation turbine fuel (ATF), most airlines are adopting a wait-and-watch policy before taking a call on whether to pass on some quantum of the drop to passengers.
Though Delhi-based low-cost carrier SpiceJet announced a 50% reduction in fuel surcharge, legacy carriers such as Jet Airways, Indian Airlines and Air Sahara are unlikely to drop fares immediately to help cushion a part of the fog-related costs due to higher fuel burn, flight disruptions and cancellations over the next couple of months.
Air Deccan, too, has no immediate plans to tweak fares.
Industry analysts said only if market leaders like Jet and Indian Airlines juggle fares will other players react. More so, in the peak travel season of December and January, when demand for air travel is more than supply, industry executives feel that at best there could be some special holiday offers in the coming weeks.
27/12/06 Sudipto Dey/Economic Times

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