Is Modi government planning to reduce airline fares? Aviation Minister Naidu issues a big statement, says...
The government has also created a Rs 10,000 crore Price Stabilisation Fund to support airlines during times of crisis. He further added that the Centre is closely monitoring ATF prices and is in discussions with airlines to assess whether the recent decline in prices is sustainable or merely a temporary dip.
Image for representational purposes
New Delhi: After tensions eased in the Middle East, crude oil prices started softening in the international market, raising the possibility of another round of airfare reductions. The Modi government has said that after the crude prices stabilize, it may ask airlines to review surcharge levies and additional fare hikes. As per news agency ANI, Union Civil Aviation Minister K. Ram Mohan Naidu said that the central government reviews Air Turbine Fuel (ATF) prices every fortnight.
These reviews are based on the movement of crude oil prices in the global market. The government has also created a Rs 10,000 crore Price Stabilisation Fund to support airlines during times of crisis. He further added that the Centre is closely monitoring ATF prices and is in discussions with airlines to assess whether the recent decline in prices is sustainable or merely a temporary dip.
Speaking to reporters, he said, "Now that we are seeing prices come down, we need to determine whether this is a long-term reduction or a sudden fall, and we are discussing this with the airlines."
Ram Mohan Naidu said that the past few months have been particularly important for the civil aviation sector. He further added that any decision related to airfare reductions would depend on the stability of fuel prices. "The last four months have been quite significant for airlines. Once we are confident that price stability will continue over the long term, we will engage with airlines and work towards reducing surcharges and additional charges that we are currently seeing," he said.
Several measures have been taken
He further stated that amid the geopolitical crisis triggered by the US-Iran conflict, the government capped the increase in Air Turbine Fuel (ATF) prices for domestic scheduled operators. It also reduced airport charges and enhanced support under the emergency credit linkage scheme to help the aviation sector cope with the situation.
When will airfares come down?
When asked when airfares were likely to be reduced, he said the government was closely monitoring the situation and wanted greater clarity on the stability of the sector before taking any decision.
He said, "Once we are confident that the current trend will continue over the long term, we will certainly engage with the airlines. Thereafter, we will also work towards reducing the surcharges and additional charges that we are currently seeing."
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