[New Delhi]Airliners Demand Roll Back In Irrational ATF
Airlines body FIA demanded roll back in jet fuel prices
FIA today demanded a roll back of the 12 per cent hike in jet fuel prices by oil companies and sought appointment of an independent price regulator to deal with the issue of “irrational” pricing.
In a letter to Civil Aviation Minister Ashok Gajapathi Raju today, Federation of Indian Airlines (FIA) threatened to move fair trade watchdog CCI if the “non-transparent” price increase continues.
FIA is a body of four established domestic private Profit Making airlines –Jet Airways+ IndiGo+SpiceJet + GoAir.
Aviation Turbine Fuel (ATF), or jet fuel, price was yesterday hiked by 12 per cent by the oil marketing companies on global cues.making air travel more costly
Jet fuel constitutes over 40 per cent of an airlines operating cost and any upward increase in the prices pushes up the cost of operations of the carrier.
The FIA also keeps open its option to pay for fuel in line with the earlier charges
According to FIA, the average price per barrel (MOPAG) from January 2016 to February 2016 has declined by 22 per cent from a rate of USD 46.49 per barrel to 36.1 per barrel while during this period the exchange rate variation has been 1 per cent from Rs 67.60 to Rs 68.20.
Body says
During this period there has been no variation in sales tax.
Tag: Aviation Turbine Fuel (ATF)
Profit Making Domestic 4 Airliners Demand Roll Back In Irrational ATF
15 New Greenfield Airports For 9 States for Increased Air Traffic
[New Delhi] 9 States To Get 15 New Greenfield Airports for Increased Air Traffic .Presently, airlines are operating to/from 76 airports in the country including major cities.
UP Will Get One Airport In Khushinagar.
Government of India (GoI) has granted “in principle” approval for setting up of 15 Greenfield airports in the country namely,
Mopa in Goa+ Navi Mumbai+Shirdi + Sindhudurg in Maharashtra+Bijapur+Gulbarga+Hasan +Shimoga in Karnataka+Kannur +Aranmula in Kerala+Durgapur in West Bengal+Dabra in Madhya Pradesh+ Pakyong in Sikkim+Karaikal in Pudducherry +Kushinagar in Uttar Pradesh.
Further, GoI has laid down Route Dispersal Guidelines (RDG) with a view to achieve better regulation of air transport services taking into account the need for air transport services of different regions of the country. It is, however, up to the airlines to provide air services to specific places depending upon the traffic demand and commercial viability. As such, the airlines are free to operate anywhere in the country subject to compliance of RDG issued by the Government.
GoI has set up an independent regulatory body, namely, Airports Economic Regulatory Authority (AERA) to determine the tariff for aeronautical services provided at major airports in the country. Further, the fuel charges are levied by the airlines as a part of total airfare on account of cost of Aviation Turbine Fuel (ATF) and other relevant factors essential for airline operations. Concerned State Governments are responsible for rationalization of ATF pricing.
This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in Rajya Sabha
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