"Lower fuel prices should mean lower fares," advises Patel.

[AA 1818]

“When ATF (aviation turbine fuel) prices have come down, so should the fares,” Civil Aviation Minister Praful Patel told reporters here.

“In the past when airlines were in difficulty, we helped them by an extra line of credit, staggered repayment of their dues and abolished Customs duty on ATF. It is now imperative for airlines to respond to the situation,” the minister said while replying to a question.

Exuding confidence that the fares would come down in the coming weeks, Patel said Air India officials had informed him that they were working on reducing fares in the near future.

This is the third time in four weeks that the civil aviation minister has asked air carriers, including Jet Airways and Kingfisher Airlines, to cut fares in response to the government’s support to the industry.

http://www.business-standard.com/ind.../00/54/343494/

Although I see where he is coming from, it may be a bit too soon to attempt to effect this move. In reality - what real power does Mr. Patel, or the Indian Goverment have to effect the change? Can they modify the credit circumstances (that they already modified favorably to the airlines earlier) now as a vehicle for more control of airline prices. Do you guys think that he should take a more laissez-faire attitude? Do you think that any real, significant change will come of this?

[Alessandro]

Some Indian officials still think they´re in the 1980ies with stateowned Air India and Indian Airlines monopoly among Indian civilian aviation. The private companies can set whatever price they like if they can afford to fly.