The Jet Airways impasse has once again brought high aviation fuel prices into the limelight.
Airlines have been lobbying hard to bring aviation turbine fuel (ATF) within the GST. High fuel price is a principal reason for Jet’s poor financial performance that led to founder Naresh Goyal’s resignation from the board on Monday and the bailout by lenders led by the SBI.
Aviation fuel makes up about 40 per cent of the operating cost of an airline, while fuel prices in the country are higher by about 35 per cent than elsewhere.
