According to sources, airline executives met Civil Aviation Minister Rammohan Naidu Kinjarapu and flagged the rising operational costs faced by carriers as the conflict continues to disrupt aviation routes and schedules.
Airlines have requested relief measures such as a reduction in excise duty or GST on aviation turbine fuel (ATF) to help offset the financial strain. Fuel accounts for roughly a quarter of airline operating costs, and any rise in fuel prices or operational inefficiencies significantly affects profitability.
Carriers told the government that flight operations to the Gulf have become more expensive as airlines are often forced to operate flights with empty seats on one leg of the journey, particularly on routes from India to West Asia. Lower passenger loads combined with reduced flight frequencies have pushed up the cost per flight.
Also Read: Why the Indian rupee weakened against the dollar on Monday
Airlines also highlighted that war-risk insurance premiums have increased, further adding to operational expenses at a time when carriers are already dealing with volatile fuel prices.
The financial pressure comes as airlines continue to grapple with disruptions to flight operations following the escalation of tensions in West Asia in late February.
The conflict triggered airspace restrictions across parts of the region, forcing airlines worldwide to cancel or reroute flights. For Indian carriers, the impact has been particularly significant because flights to Europe and North America typically pass through West Asian air corridors, while access to Pakistani airspace remains restricted.
The disruptions led to widespread flight cancellations and schedule changes in the initial days of the crisis. Government data showed that inbound flights from West Asia dropped sharply, with just 24 flights operated by Indian carriers on March 3, before gradually stabilising to around 50 flights a day as airlines adjusted schedules and routes.
Airlines say the cost impact of the conflict continues to be felt through higher fuel consumption, increased insurance costs and operational inefficiencies.
Carriers have warned that if the disruptions persist, the financial strain on airlines could intensify, potentially leading to higher ticket prices on international routes.
Source link
#Airlines #seek #government #relief #West #Asia #conflict #drives #costs #CNBC #TV18
