The Union government is prepared to direct airlines to reassess surge charges and additional fares if aviation turbine fuel (ATF) prices sustain a stable trend over an extended period, Civil Aviation Minister K Ram Mohan Naidu stated on Thursday.
Government Monitoring Fuel Prices Closely
Speaking to reporters in Varanasi, Naidu explained that the Centre is closely tracking ATF prices and engaging with airlines to determine whether the recent decline in fuel costs is a temporary fluctuation or a lasting shift. The government currently reviews ATF prices every two weeks, based on global crude oil movements.
To cushion the impact of the West Asia crisis on airlines, the government has established a Rs 10,000 crore price stabilisation fund. This fund is designed to support carriers during periods of distress caused by geopolitical instability.
Stability Needed Before Action
"Secondly, now that we are seeing prices coming down, we still have to see if this is a long-term reduction or if it is sudden, and we are talking to the airlines on this," the minister said. He noted that the past four months have been critical for the aviation sector, and any decision on fare-related charges will depend on the durability of lower fuel prices.
"The last 4 months have been very important for the airlines... Once we are clear that price stability will continue for a long time, we will talk to them and work towards reducing the surge charges or the extra prices we are seeing right now," Naidu told ANI.
Government Support Measures
Highlighting the government's proactive stance, Naidu pointed to the Rs 10,000 crore stabilisation fund as evidence of the importance New Delhi places on the issue. "In the case of ATF, we have also provided a price stabilisation fund of Rs 10,000 crore. So you can see how important the Indian government is considering this issue right now," he added.
Amid the ongoing geopolitical crisis, the government has also capped ATF prices for domestic scheduled operators, reduced airport charges, and extended support under the Emergency Credit Linkage scheme. These measures aim to alleviate financial pressure on airlines and ensure stable operations.
