Indian airline industry faces shutdown risk amid ATF price surge, FIA seeks urgent government support


In a letter to the Union government, the Federation of Indian Airlines has warned that the industry is nearing shutdown due to sharp increases in aviation turbine fuel prices. It sought the government’s urgent intervention in the matter, citing unsustainable operational costs, particularly impacting international routes and worsening financial stress across carriers.

ATF prices have risen significantly amid global supply disruptions, increasing operational costs by up to 50%. The industry has proposed measures, including bringing ATF under GST, reducing VAT, and rationalising taxes to ease financial pressure and maintain competitiveness in international markets.



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