NEW DELHI : India’s three largest airlines — Air India, IndiGo and SpiceJet have warned the government that the country’s aviation industry is on the verge of severe operational disruption as soaring fuel costs and airspace restrictions push expenses sharply higher.
The carriers, which together account for around 95 percent of India’s aviation market, told authorities that the sector is nearing a point where continuing normal operations could become unsustainable, Press Trust of India (PTI) reported.
The warning comes as the ongoing regional conflict and the near-complete closure of the Strait of Hormuz have driven up global oil prices, significantly affecting India, the world’s fifth-largest aviation market.
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Airlines said the sharp rise in Aviation Turbine Fuel (ATF) prices which make up nearly 40 percent of an airline’s operating costs has placed immense financial pressure on carriers already dealing with longer flight paths and increased fuel burn due to restricted airspace across parts of the Middle East.
Long-haul international routes have been particularly affected, with rerouting adding both time and cost to operations.
The airlines have sought an urgent revision to the ATF pricing mechanism, arguing that current pricing structures are no longer viable under the present geopolitical conditions.
The Federation of Indian Airlines (FIA) has also formally requested the Ministry of Civil Aviation to extend a more balanced fuel pricing mechanism to cover both domestic and international operations.
Industry executives said immediate policy intervention is necessary to prevent further financial strain and maintain service continuity across the country’s aviation network.
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