Immediate fare hike in aviation sector unlikely

The government on Wednesday said that there may not be an immediate fare hike in the aviation sector despite impending increase in the fuel prices even as it proposed to give fuel rate concessions for air traffic operations in difficult areas.

"In spite of the fuel price hike, we may not see a rise in air fares primarily due to enhanced competition," civil aviation secretary A H Jung told the India Aviation Meet organised by the Confederation of Indian Industry.

Stating that bilateral air traffic rights were being liberalised on "need-driven basis", he said that during the last one year 15 countries have signed tie-ups providing for a total of 13,129 seats per week for each side. This, the secretary said, would enhance competition thereby making freight hike a difficult proposition.

"As regards the inland air travel tax (IATT) for operations in north-east and other difficult areas, it is already through," Jung said.

Stating that the government decided to provide aviation turbine fuel at international prices for turbo-prop aircraft operations in these difficult areas, he said that the matter "is under process. It could come shortly, may be during next session of Parliament".

To a question, Jung said while he personally favoured concession in landing and parking facilities no commitment could be made yet.

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