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Updated: 16/12/2008 | 10:41 PM IST
Patel tells airlines to cut fares
Sandeep Phukan
Tuesday, December 16, 2008 (New Delhi)
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It is payback time for the India's private airlines. With significant reduction in jet fuel prices, Civil Aviation Minister Praful Patel on Tuesday asked airlines to reduce fares.

He said the government intervened when fuel prices were at its peak to keep them afloat, but with fuel prices sliding down, fares should also come down.

"It is now imperative for the airlines to respond to the situation, and reduce fares," said Civil Aviation Minister Praful Patel.

The civil aviation minister has repeatedly asked leading air carriers to cut fares in response to the government's support to the industry.

Leading domestic airline Kingfisher Airlines said it will decide on a air fare cut in a few days.

In July this year, a kilolitre of ATF or aviation turbine fuel cost nearly Rs 70,000, but now it has fallen to less than half of that. However, fares have come down only by about Rs 500 on most domestic route.

According top Rajiv Shukla, member, Consultative Committee of Civil Aviation, “Airlines are going empty so they should lower fares and earn profits on volumes."

All airlines will follow once Air India takes the lead in reducing fares. That’s sure to happen, after all no government can afford to ignore popular sentiments.

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