New Delhi, Sept. 2

Domestic air fares will not come down just yet despite the oil companies reducing the price of aviation turbine fuel (ATF). On Friday, the state-owned oil major, Indian Oil, announced a reduction of between Rs 896 and Rs 978 per kilolitre of ATF being sold to domestic airlines in September.

The reduction has, however, not enthused the airline industry to lower either their fares or the fuel surcharge. The Chief Executive Officer, SpiceJet, Mr Siddhanta Sharma, said that the airline had no immediate plans to decrease fares.

The President and Chief Executive Officer, IndiGo Airlines, Mr Bruce Ashby, pointed out that it might not be possible to immediately pass on the benefit of lowered ATF prices to the passengers as in the past 12 months fuel prices had tended to go up more often than they had come down.

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