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Aviation Turbine Fuel Shortage: Due to the rapid increase in the prices of jet fuel, the concern of airline companies has increased. If there is no improvement in the situation, the risk of stoppage of flight service may increase. In fact, the Federation of Indian Airlines (FIA), an organization of India’s top airline companies, has issued a serious warning. FIA has said that the current price environment is not good for airline companies.

In a letter to the Civil Aviation Ministry, the FIA ​​has suggested that there is an urgent need for support in aviation turbine fuel (ATF) prices to keep airlines operational. It is noteworthy that FIA represents Air India, IndiGo and SpiceJet.

Too much pressure on the airline industry

Describing the crisis as serious, the organization said that the airline industry in India is under immense pressure and is on the verge of closure or halting its operations. According to the FIA, aviation turbine fuel prices have become extremely unpredictable. This is having a negative impact on the operations of both domestic and international aircraft of airline companies.

The FIA ​​criticized the current pricing system, saying that ATF’s ad-hoc pricing was making airline networks impractical and unsustainable. The body further said that this imbalance is deteriorating route economics and forcing airlines to rethink the viability of their networks.

ATF prices increased by Rs 73-75

According to the Federation of Indian Airlines, ATF prices for overseas operations have increased by Rs 73 to Rs 75 per litre, due to which some routes have been completely affected and huge losses are being incurred. With this they Indian Airlines The profits of airlines have declined even more as they compete with foreign airlines operating from low-cost hubs.

The demands put forward by the organization to the government include temporarily suspending the 11 per cent excise duty on ATAF for domestic operations. Apart from this, there has also been a demand to re-implement a standard crack brand pricing mechanism. At the same time, there has also been a demand for VAT in major aviation hubs.

Danger looms over operation of aircraft

The FIA ​​said the current tax structure is increasing cost pressures. The organization warned that continued volatility and higher prices could have serious consequences. Any arbitrary pricing or irrational increase in the price of ATF will result in huge losses for the airlines and will lead to grounding of flights. There could be reduced connectivity, increased fares and widespread instability in flight schedules.