New Delhi: The cost of aviation turbine fuel has gone up by over 150 per cent in the past year. Heads of domestic airlines are already pruning operations and hope the Government will find a way to help them soften the crude blow.
They have Aviation Minister Praful Patel on their side. He has asked the Prime Minister for time to make a case for the aviation sector, which is growing unhealthier by the day with a combined loss of over Rs 4,000 crore in 2007-08.
The losses are led by Aviation Turbine Fuel, which has gone up by 150 per cent and is 40 per cent of the cost of running an airline.
After increasing fares they are now seriously looking at curtailing flights.
“There's no viability in now domestic sector. We have expanded cautiously and even kept our capacity level, more or less, stable. We will continue to do that but I would not exclude that we'll curtail operations,” says CEO Jet Airways, Wolfgang Prock-Schauer.
The airlines want landing and parking charges to be waived, want states to cut sales tax on ATF to four per cent, cutting down congestion at airports and want the Government to allow them to do their own ground handling.
“We have asked them for specific details which we'd be dovetailing in the form of a representation which will be made by the (Aviation) Minister to FM and PM,” said Civil Aviation Secretary, Ashok Chawla
Meanwhile, the Director General of Civil Aviation (DGCA) has come out guidelines to save fuel. Newer airlines are also asking the Government to do away with the five-year restriction on international flights.
This way they can benefit from cheaper fuel abroad.
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