Air India to Reduce Flights Amid Rising Jet Fuel Costs
Air India Flight Reductions Due to Fuel Price Surge
In response to escalating jet fuel prices, Air India plans to decrease its daily flight operations by nearly 100 across both domestic and international routes. This decision affects the airline's extensive schedule of approximately 1,100 flights each day to destinations including Europe, North America, Australia, and Singapore, particularly for June. The industry is bracing for a potential increase in jet fuel prices, with oil marketing companies set to announce revisions soon, which could exacerbate the current situation. As of the week ending April 24, global average jet fuel prices reached $179.46 per barrel, marking an 80% increase from $99.40 at the end of February. A senior official from Air India expressed concerns, stating, 'We are not even covering our operating costs on many flights. Continued price hikes will compel us to make further cuts,' as reported by a financial news outlet.
Additionally, Air India is considering making in-flight meals optional for its domestic and short-haul international flights. This change could allow passengers who choose not to have meals to save around Rs 250 on their ticket prices. The airline is also looking to separate lounge access for business class travelers, which could lead to lower ticket prices for those who opt out of this service.
In a related development, the government has announced a reduction in export duties on diesel and aviation turbine fuel (ATF) for the upcoming fortnight starting May 1. The export duty on diesel has been cut from Rs 55.5 per litre to Rs 23 per litre, while the duty on ATF has been adjusted from Rs 42 per litre to Rs 33 per litre. The Finance Ministry confirmed that the export duty on petrol remains unchanged at zero.
Indian Airlines Call for Government Support
The Federation of Indian Airlines (FIA), which includes major carriers like Air India, IndiGo, and SpiceJet, has reached out to the Ministry of Civil Aviation (MoCA) requesting immediate government action regarding ATF pricing. They have warned that the aviation sector is facing 'extreme stress' due to the ongoing crisis in West Asia. The FIA has urged MoCA to consider a temporary suspension of excise duty on ATF, a reduction of VAT in critical states, and the reinstatement of the crack band in accordance with previously agreed terms.