Air fares was one of the key issues discussed by the Federation of Indian Airlines (FIA), a lobbying body of the Indian carriers, at a meeting held in New Delhi, sources said.
"There was some resistance from full service carriers but eventually they also agreed," said a source present in the meeting.
All the carriers had increased prices from June 1 when an ATF fare hike was announced. But none of them decreased fuel surcharge or basic fare when the ATF prices were decreased later due to dip in customs duty on ATF. Hence, carriers have decided not to increase fares this season," a source said.
ATF prices have been increased four times since January and lowered twice.
While SpiceJet and IndiGo said they were not increasing fares this month, it could not be immediately ascertained whether full service carriers had taken any decision on this issue yet.
The country's oil marketing companies raised prices of aviation turbine fuel by as much as 7 per cent, negating the reduction in prices on June 5 after the government cut customs duty of the fuel from 10 per cent to 5 per cent.
Prices of ATF have been raised by 7.04 per cent in Kolkata, while in Delhi, Mumbai and Chennai it was has gone up by around 4.35 per cent. On June 5, prices of the fuel were reduced by around 4.33 per cent.
According to sources, the FIA has also decided to write to the ministry of civil aviation and the Bangalore, Hyderabad and Mumbai airports opposing the common user fee. Mooted by the Hyderabad and Bangalore greenfield airports and recently by the Mumbai airport, a fee of Rs 85 should be charged by airport operators from the airlines who use their common user terminals and common IT systems.
"We have decided to tell the ministry and the airports that we cannot pay the common user fee," said a source.
"If they want they can levy it from the passengers directly," he added.
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