On Monday, Kingfisher Airlines said that there is no case for decreasing its air fares in the immediate term.

Kingfisher Airlines spokesperson informed, “Once the Government brought aviation turbine fuel (ATF) under the Declared Goods category, it would immediately and significantly reduces fares.”

He further said, “The sharp and immediate spike in ATF prices earlier in the year has left a lasting impact on the bottom lines of the companies, leading to an accumulation of huge outstandings and liabilities with the oil companies and the likes.”

He told that the flow of cash needs to be resolved to these accumulated liabilities and there was no case for a reduction in fares.

There has been a quick decline in ATF prices over the last four months. Following that,  some airlines has reduced the fuel surcharge between Rs200-400 earlier this month but they have been not effected any fare cuts.  

Praful Patel, Union Civil Aviation Minister had frequently called upon the air carriers to pass on the advantage of the ATF price cut to the customers, but his pleas have so far gone unheeded.