ATF prices increase the concern of airline companies, if immediate help is not provided, operations may come to a halt

Country Major airline companies of India have sought help from the government, citing that the industry is under extreme pressure due to high prices of ATF. Airline companies say that if there is no immediate relief regarding ATF prices, there may be a situation of work stoppage. The Federation of Indian Airlines (FIA) has written a letter to the Civil Aviation Ministry demanding relief in ATF (aviation fuel) prices and taxes and restoration of uniform pricing regime for domestic and international flights.

There may be a need to park the plane at the airport

This organization, with the participation of Air India, IndiGo and SpiceJet, has said that due to the ongoing tension in West Asia, there has been a huge increase in the prices of crude oil, while the operating expenses have increased even more due to the air space ban in many countries. Let us tell you that ATF accounts for about 40 percent of the total operating expenses of airline companies. “Any kind of ad-hoc pricing (between domestic and international) or unreasonable increase in ATF prices will cause huge losses to airlines and may lead to grounding, leading to flight cancellations,” FIA said in the letter dated April 26.

Demand to temporarily postpone 11 percent excise duty

Airline companies have demanded temporary suspension of 11 percent excise duty on ATF. He says that the cost has increased further due to increased prices of ATF and falling rupee. According to the organization, last month the government had capped the increase in ATF prices to Rs 15 per liter for domestic flights, but for international operations the prices increased to Rs 73 per liter. Due to this, companies have suffered huge losses in April. Airline companies have warned that if the current price structure continues, it will become impossible to operate both domestic and international flights and the industry may reach a serious crisis.