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Airlines seek fuel, tax relief as West Asia conflict raises operating costs
Airlines are pressing for a stable-price scheme as jet fuel now accounts for 55% to 60% of operating costs, industry groups said.
- Civil Aviation Minister Rammohan Naidu confirmed discussions on Tuesday with airlines and OMCs regarding soaring jet fuel prices impacting aviation operations across India.
- Jet fuel now accounts for 55-60% of airlines' operational expenses, up from 30-40% previously, prompting India's largest airline IndiGo to implement fuel surcharges after six months.
- The government is considering reviving the Rs 10,000-crore Price Stabilisation Fund , under which OMCs would sell fuel at fixed prices previously set at Rs 115 per litre in Delhi.
- Previously, the PSF lapsed after no airline signed up before prices moderated; now October 1 revisions have hiked fuel prices by Rs 16 to Rs 137 per litre, renewing interest.
- Representing IndiGo, Air India, and SpiceJet, the Federation of International Airlines urged the government to abandon international benchmark pricing for a cost-plus model, warning airlines may exit unsustainable routes.
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Govt in Talks with Airlines, OMCs as West Asia Crisis Pushes Up ATF Prices: Civil Aviation Minister
Get latest articles and stories on Business at LatestLY. The government is in discussion with both airlines and oil marketing companies (OMCs) to address the ongoing impact of West Asia crisis which is putting significant pressure on aviation turbine fuel (ATF) prices, said Union Civil Aviation Minister Ram Mohan Naidu. Business News | Govt in Talks with Airlines, OMCs as West Asia Crisis Pushes Up ATF Prices: Civil Aviation Minister .
·Mumbai, India
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Coverage Details
Total News Sources14
Leaning Left1Leaning Right4Center1Last UpdatedBias Distribution66% Right
Bias Distribution
- 66% of the sources lean Right
66% Right
L 17%
C 17%
R 66%
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