• The aviation sector is in the most difficult times


• Letter to FIA Ministry of Civil Aviation


• Demand to reduce duty on ATF

Aviation Crisis In India : The Indian aviation sector is currently going through its toughest times. Major airlines of the country have warned the government that if there is no immediate relief from the skyrocketing prices of ATF, they will have to stop their flights.

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FIA Letter to Ministry of Civil Aviation:

The Federation of Indian Airlines (FIA) issued this warning in a letter to the Ministry of Civil Aviation. Air India, IndiGo and SpiceJet are members of the federation. The FIA ​​has asked the Ministry of Civil Aviation to ease aviation fuel prices, taxes and re-impose a uniform tariff system for domestic and international flights.

A sharp rise in crude oil prices

The FIA ​​said the current tensions in West Asia have led to a sharp rise in crude oil prices, while airspace restrictions in several regions have further increased operating costs. About 40 percent of the total operating expenses of airlines are spent on ATF. “Any indeterminate fare fixing or undue increase in ATF prices in domestic and international services will cause huge losses to airlines and may lead to grounding of aircraft operations, resulting in cancellation of flights,” the FIA ​​said in its April 26 letter.

Demand to reduce duty on ATF

Airlines have demanded a temporary suspension of 11 percent excise duty on ATF. According to him, rising fuel prices and depreciation of the rupee have further increased the cost. According to the Association of Airlines, the government last month capped the hike in ATF to Rs 15 per liter for domestic flights, but hiked the rate to Rs 73 per liter for international flights. This has had a severe impact on global flights, with heavy losses in April.

Airlines warned

According to the FIA, the current system has created an imbalance between domestic and international flight services, making the entire network unviable and unsustainable. Airlines have warned that if the current tariff structure continues, it will become impossible to operate both domestic and international flights and the industry could face a serious crisis.

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