Indian Airlines Seek Urgent Government Aid as Aviation Crisis Looms

Leading Indian airlines, including Air India, IndiGo, and SpiceJet, have issued a grave warning to the Union government, stating that the aviation sector is on the brink of ceasing operations due to escalating jet fuel prices. The Federation of Indian Airlines (FIA), which represents these major carriers, has called for immediate financial assistance to navigate the mounting challenges fueled by the ongoing conflict in West Asia.

The turmoil in West Asia, which erupted on February 28, has had far-reaching implications for energy supply chains, contributing to soaring global oil prices and leading to restrictive airspace conditions. With aviation turbine fuel (ATF) accounting for nearly 40% of airline operating expenses, the rising costs have placed immense pressure on airlines’ financial viability.

In a letter dated April 26, the FIA urged the Civil Aviation Ministry to implement a standardized pricing system for jet fuel applicable to both domestic and international flight operations. They cautioned that any inconsistent pricing or irrational hikes in fuel costs could result in catastrophic losses for airlines, potentially leading to flight cancellations and grounded aircraft.

The federation’s plea for support comes at a time when the aviation industry is recovering from the severe impacts of the COVID-19 pandemic, and the current geopolitical tensions have exacerbated existing vulnerabilities. With travel demand gradually returning, airlines are struggling to balance operational costs and profitability amidst this volatile backdrop.

The request for relief also highlights the need for a comprehensive approach towards fuel pricing, emphasizing that ad-hoc measures could jeopardize the industry’s stability. The airlines have proposed that adjustments in excise duties on aviation turbine fuel be considered to alleviate some of the financial burdens they are currently facing.

Source: scroll.in