Kingfisher Airlines Ltd has announced that it would reduce airfares as soon as the Indian government incorporates aviation turbine fuel (ATF) in the declared goods category.

"Kingfisher will immediately reduce airfares across the board as soon as the declared goods classification is approved for ATF," Chairman Vijay Mallya said in a statement late on Monday.

Mallya also declared that there will be no job cuts.

Mallya's step comes in the wake of the Finance Minister P Chidambaram's announcement to introduce a bill during the forthcoming Parliament session to bring ATF under the declared goods category, thus attracting a uniform sales tax of 4% across the country.

This initiative is expected to bring about the much needed financial stability in the Indian Aviation Industry.

Shares of Kingfisher went up 5.71 percent at 25.15 rupees in the Mumbai market.