The Federation of Indian Airlines has called on the Ministry of Civil Aviation for urgent assistance, stating that the current pricing of Aviation Turbine Fuel is causing extreme stress on the industry.
The FIA adds that this stress has brought the airline industry to the brink of collapse, with international operations becoming 'completely unviable' due to the increase in ATF price by Rs.73 per litre.
The ongoing conflict between the US and Iran has led to a blockade of the Strait of Hormuz, a vital passage for around 20 per cent of the world's energy supply, causing a significant increase in ATF prices.
The FIA has offered three suggestions to the government to address the crisis, including reinstatement of crack band in-line with a pre-agreed formula, temporary deferment of excise duty of Aviation Turbine Fuel, and reduction of VAT in key states such as Delhi and Tamil Nadu.
