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‘On the Verge of Closing Down’: India’s Aviation Industry Under Strain as Fuel Costs Surge
The Federation of Indian Airlines says jet fuel costs have made operations unviable and urges tax relief as Brent crude jumps to $118 a barrel.
- The Federation of Indian Airlines , representing IndiGo, SpiceJet, and Air India, warned the Ministry of Civil Aviation that the industry faces potential shutdowns due to unrelenting cost pressures.
- Disruptions to the Strait of Hormuz via the West Asia War blockaded a chokepoint carrying roughly 20% of global oil, driving Brent Crude prices from $72 to $118 per barrel and surging Aviation Turbine Fuel costs.
- Aviation fuel expenses have ballooned to 55-60% of airline operating costs, while jet fuel costs skyrocketed by about 0.60 per litre; a weakening rupee compounded the financial burden for Indian carriers.
- To avert disaster, the FIA urged the government to restore refinery margins under a "crack band" formula, suspend the 11% excise duty on ATF, and cut VAT rates in Delhi and Tamil Nadu.
- Major hubs including Mumbai, Bangalore, Hyderabad, and Kolkata account for over half of India's operations yet face VAT between 16% and 20%, complicating efforts for Indian airlines to compete globally.
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Indian airline industry warns the ‘whole sector is on verge of collapse’ over jet fuel
According to a report from The Mirror, India’s aviation sector faces an existential threat as surging jet fuel prices, triggered by the escalating US-Iran conflict, push major carriers toward unsustainable operations. The Federation of Indian Airlines (FIA), representing key domestic players including IndiGo, SpiceJet, and Air India, has issued a stark warning to the Ministry […]
Coverage Details
Total News Sources23
Leaning Left2Leaning Right5Center2Last UpdatedBias Distribution56% Right
Bias Distribution
- 56% of the sources lean Right
56% Right
L 22%
C 22%
R 56%
Factuality
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