The government is contemplating urging airlines to reevaluate and decrease surge pricing and additional passenger charges if the recent drop in crude oil and aviation fuel prices proves to be lasting, as stated by Civil Aviation Minister K Ram Mohan Naidu on Thursday. Monitoring aviation turbine fuel (ATF) price trends closely, the government has started talks with airlines to gauge the sustainability of the current decline in fuel costs. Naidu mentioned that while prices are currently decreasing, it is essential to determine if this reduction is long-term or temporary, with ongoing discussions with airlines in progress.
The aviation sector has encountered significant challenges in recent times due to geopolitical tensions, resulting in crude oil price fluctuations and increased operational expenses for airlines. In response to higher fuel costs, carriers have imposed additional charges and adjusted fares to counter rising expenditures. The government plans to collaborate with airlines to reduce these supplementary charges once there is confidence that aviation fuel prices have stabilized over an extended period. The aim is to ensure that the advantages of reduced fuel expenses are eventually passed on to passengers.
To assist the aviation industry during market uncertainties, the government has introduced various measures, including a Rs 10,000 crore price stabilization fund. Additionally, steps such as capping ATF prices for domestic scheduled airlines, reducing specific airport charges, and providing emergency credit support to carriers have been implemented. The minister emphasized that the government will continue to monitor global energy market developments and domestic fuel prices closely before making any decisions regarding airfare reductions.
