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Patel pitches for lower air fares

NEW DELHI: Renewing his pitch for making air travel cheaper, Civil Aviation Minister Praful Patel on Saturday asked airlines to slash fares in response to the government’s support to the aviation industry.

But Jet Airways chief Naresh Goyal voiced the industry’s concerns over the prevailing financial crisis and said, “I certainly would not like to close down my company.”

However, Mr. Patel, who shared the dais at the Hindustan Times Leadership Summit here with Mr. Goyal and Kingfisher chief Vijay Mallya, later exuded confidence that air fares would become cheaper by December. “December onwards, you will see the fares coming down,” he said after the session.

At the session, Mr. Patel said “perceptionally, the government is trying its best to help you [aviation industry] to tide over the situation ... It has taken the onus to help you. Now with the fuel prices coming down, you must match the perception that fares are coming down.”

With the general elections weighing on his mind, Mr. Patel said “we live in a democratic set up and have to face the people. Therefore, we want the entire aviation industry to know that we understand your difficulties and are trying to help you out.”

Wanting the industry to reciprocate, Mr. Patel said the airline’s action in this regard “must reflect in better, lower air fares for the passenger.”

Looking at Mr. Mallya seated on his side, the Jet chief said “you can live on liquor [his prime business] but we can’t.”

Asked if he would ask State-owned carrier Air India to reduce fares, Mr. Patel said, “We have never dictated what Air India should do in terms of pricing or routes or capacity. But AI, as a responsible government carrier, will also understand that if the oil prices are coming down, so should the fares.”

Building his case on the crisis facing the airlines, Mr. Goyal said “we have a responsibility to our shareholders, we need to protect our bottom line. We will do whatever the government wants us to do, provided we are profitable.”

Mr. Mallya also elaborated on the causes of the financial downturn experienced by the industry, saying high taxes on ATF was the major reason for mounting debts of airlines to oil companies and the Airports Authority of India. — PTI

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