Indian Airlines Warn of Shutdown Risk, Seek Relief on Fuel Prices
The Federation of Indian Airlines says ATF now takes nearly 40% of operating costs and wants a uniform pricing system restored.
- The Federation of Indian Airlines urged the Civil Aviation Ministry to restore a uniform fuel pricing mechanism, seeking a return to the transparent "crack band" framework previously used for Oil Marketing Companies .
- Last month, the government limited the domestic ATF price hike to Rs 15 per litre, while international rates rose by Rs 73 per litre, rendering airline networks unsustainable.
- ATF accounts for nearly 40 per cent of operational expenses, compounded by high taxes: Delhi levies 25 per cent VAT while Tamil Nadu charges 29 per cent on jet fuel.
- Seeking further relief, Indian Airlines requested a temporary deferment of the 11 per cent excise duty on ATF, warning that the tax burden increases manifold alongside rising fuel costs and rupee depreciation.
- "The airline industry in India is under extreme stress and is on the verge of closing down or of stopping its operations," the Federation stated, as current pricing frameworks have made both operations unviable.
30 Articles
30 Articles
Indian airlines seek government help on jet fuel prices
The main carriers say the current pricing mechanism is creating an imbalance and rendering flight networks unviable Indian airline companies have sought government help as surging jet fuel prices threaten commercial viability. The Federation of Indian Airlines (FIA) – an industry body that represents the top carriers, including Air India, IndiGo, and SpiceJet – said...
‘Aviation sector on verge of stopping operations’: Airlines ask Centre for relief on jet fuel prices
Air India, IndiGo and SpiceJet have told the Union government that the country’s aviation sector is on the verge of “stopping operations”, and have sought a revision in aviation turbine fuel prices amid the conflict in West Asia, PTI reported on Tuesday.“In order to survive, sustain and continue operation, we request your urgent intervention for immediate and meaningful financial support to tide over the current situation,” the Federation of Ind…
Indian airlines warn of shutdown risk amid soaring ATF costs, seek urgent govt relief
Mumbai: Air India, IndiGo and SpiceJet have told the government that the country’s airline industry is under extreme stress and on the verge of “stopping operations”, as they sought revision in ATF pricing and financial support. The West Asia turmoil has pushed up oil prices, and airspace restrictions have increased airlines’ operating costs, especially on long-haul routes. Aviation Turbine Fuel (ATF) accounts for around 40 per cent of a carrier…
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