New Delhi: Aviation Turbine Fuel (ATF) Prices touched an all-time high in India on Tuesday, making the struggle to survive even harder for Covid-ravaged airlines.
A kilo liter (KL or 1,000 litre) for domestic flights now costs Rs 86,038.2 in Delhi and Rs 84,505.6 in Mumbai – the two busiest airports in India.
Officials of all airlines say that the aviation ministry should now automatically increase the domestic fare limit in view of the situation or the industry will need to ask for it.
The ATF price in Delhi has been increased by Rs 6,743.25 per kl or 8.5 per cent to Rs 86,038.16 per kl. This is the highest ever value touched by ATF (in India). This is up from Rs 71,028.26 per kiloliter in August 2008, when the international crude oil price reached $147 a barrel,” said an airline official.
ATF alone accounts for about 40% of the operating cost of Indian airlines as the country has the most expensive jet fuel globally for domestic flights.
The hike comes on a day when the struggling industry got no respite, however, in the Budget. Ronojoy DuttaIndiGo, CEO, India’s largest airline (by passenger carriage), said, “…we were expecting tax concessions to the aviation industry in the form of reduction in ATF excise duty and allocation of concessional finance to airlines so that we can get relief from this.” May help come out. Global pandemic.”
omicron That’s hit the travel industry – which had just begun to recover from the delta shock until last November, when the latest wave arrived – hard. Passenger numbers are again at rock bottom.
Finance Minister Nirmala Sitharaman Expanded the Emergency Credit Line Guarantee Scheme for the hospitality industry.
“Hospitality and related services, especially by micro and small enterprises, are yet to regain their pre-pandemic levels of business. Keeping these aspects in mind, ECLGS will be extended till March 2023 and its guarantee cover will be increased by Rs 50,000 crore to a total of Rs 5 lakh crore, additional amount will be earmarked exclusively for hospitality and related enterprises,” the FM said. Said in his speech.
However, the hospitality industry feels that this may not be enough to protect them from repeated pandemics.
Federation of Associations in Indian Nakul Anand said, “The entire tourism, travel and hospitality industry is feeling quite disappointed… there is an urgent opportunity for more direct intervention to support the highly stressed tourism, travel and hospitality companies and their employees. Was.” President of Tourism and Hospitality (FAITH).
“This could come in the form of salary support for employees of travel and hospitality companies till tourism revival takes place; basic status status for hotels; e-visa fee waiver for all tourist visas till inbound revival; Domestic income tax travel credit for Indian citizens and Indian companies; constitution of a GST review committee to re-examine export status and (sector’s) pain points for tourism export earnings,” Anand said.
A kilo liter (KL or 1,000 litre) for domestic flights now costs Rs 86,038.2 in Delhi and Rs 84,505.6 in Mumbai – the two busiest airports in India.
Officials of all airlines say that the aviation ministry should now automatically increase the domestic fare limit in view of the situation or the industry will need to ask for it.
The ATF price in Delhi has been increased by Rs 6,743.25 per kl or 8.5 per cent to Rs 86,038.16 per kl. This is the highest ever value touched by ATF (in India). This is up from Rs 71,028.26 per kiloliter in August 2008, when the international crude oil price reached $147 a barrel,” said an airline official.
ATF alone accounts for about 40% of the operating cost of Indian airlines as the country has the most expensive jet fuel globally for domestic flights.
The hike comes on a day when the struggling industry got no respite, however, in the Budget. Ronojoy DuttaIndiGo, CEO, India’s largest airline (by passenger carriage), said, “…we were expecting tax concessions to the aviation industry in the form of reduction in ATF excise duty and allocation of concessional finance to airlines so that we can get relief from this.” May help come out. Global pandemic.”
omicron That’s hit the travel industry – which had just begun to recover from the delta shock until last November, when the latest wave arrived – hard. Passenger numbers are again at rock bottom.
Finance Minister Nirmala Sitharaman Expanded the Emergency Credit Line Guarantee Scheme for the hospitality industry.
“Hospitality and related services, especially by micro and small enterprises, are yet to regain their pre-pandemic levels of business. Keeping these aspects in mind, ECLGS will be extended till March 2023 and its guarantee cover will be increased by Rs 50,000 crore to a total of Rs 5 lakh crore, additional amount will be earmarked exclusively for hospitality and related enterprises,” the FM said. Said in his speech.
However, the hospitality industry feels that this may not be enough to protect them from repeated pandemics.
Federation of Associations in Indian Nakul Anand said, “The entire tourism, travel and hospitality industry is feeling quite disappointed… there is an urgent opportunity for more direct intervention to support the highly stressed tourism, travel and hospitality companies and their employees. Was.” President of Tourism and Hospitality (FAITH).
“This could come in the form of salary support for employees of travel and hospitality companies till tourism revival takes place; basic status status for hotels; e-visa fee waiver for all tourist visas till inbound revival; Domestic income tax travel credit for Indian citizens and Indian companies; constitution of a GST review committee to re-examine export status and (sector’s) pain points for tourism export earnings,” Anand said.
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