Private air carrier Kingfisher Airlines today said that there is no case for reducing its air fares in the immediate term.
However, once the Government brought aviation turbine fuel (ATF) under the "Declared Goods" category, it would immediately and significantly reduce fares, a Kingfisher Airlines spokesperson said.
"The sharp and immediate spike in ATF prices earlier in the year has left a lasting impact on the bottomlines of the companies, leading to an accumulation of huge outstanding and liabilities with oil companies and the likes," the spokesperson said.
As such, the cash flow needed to settle these accumulated liabilities and there was no case for a reduction in fares, he said.
Earlier, Jet Airways' Chairman Naresh Goyal had also said that he was not in favour of any fare cut as long as ATF was not classified as `Declared Goods'.
Over the last four months, there has been a sharp decline in ATF prices. While some air carriers had earlier this month reduced the fuel surcharge between Rs 200-400, they have not effected any fare cuts.
Union Civil Aviation Minister Praful Patel has repeatedly called upon air carriers to pass on the benefit of the ATF price cut to customers, but his pleas have so far gone unheeded.