Airlines seek ATF price relief; say industry on verge of `stopping operations`
Major Indian carriers, including Air India, IndiGo and SpiceJet, have warned the government that the aviation sector is under extreme financial stress and may be “on the verge of stopping operations” without urgent intervention. The concerns were raised in a letter to the civil aviation ministry by the Federation of Indian Airlines (FIA), which represents the three airlines. According to the PTI, the airlines said the ongoing turmoil in West Asia has pushed up global oil prices, while airspace restrictions have increased operating costs, particularly on long-haul routes. Aviation Turbine Fuel (ATF), which accounts for nearly 40 per cent of airline operating costs, has become significantly more expensive. The FIA has urged the government to introduce a uniform fuel pricing mechanism for both domestic and international operations, similar to the earlier “crack band” system. The federation said the widening gap between crude oil and ATF prices is making airline operations financially unsustainable, with airlines facing mounting losses, the news agency reported. Warning of flight disruptions The airlines warned that any further ad hoc changes in …
