Airlines seek removal of fare cap after hike in aviation fuel price, losses due to pandemic
NEW DELHI: Since the beginning of January the cost of aviation turbine fuel has been increased by Rs 38,902 per kilolitre. It cost Rs 1,12,924 per kilolitre at present. The hike in the cost of ATF, which comprises 50 per cent of the cost of running an airline, is one of the factors responsible for airlines requesting for removal of the cap on fares.
“Owing to the constantly rising ATF costs,, and recovery of the Indian Aviation sector, we believe that the Government can stimulate the aviation sector by completely doing away with fare caps. It will be helpful in expediting recovery from the pandemic’s severe effects while making air travel affordable for Indian travellers this summer season. These restrictions were implemented for a valid reason, but now would be a good time to relax them,” said a spokesperson of IndiGo.
