India: Airlines protest fuel price hike, warn of CCI action
Leading domestic airlines demanded a rollback of a sudden 12% hike in ATF prices announced by oil companies Tuesday and warned that they would be compelled to approach the Competition Commission of India (CCI) on such “non-transparent” changes. Aviation fuel costs account for over 40% of an airline’s cost of operations, and hence could impact air fares. The govt said that part of the hike in ATF prices was due to an increase in excise duty on aviation fuel. “Out of the total 11.5% hike, 5% increase is on account of an increase in the input costs of ATF and the rest 6.5% is on account of excise duty (hike on ATF),” Civil Aviation secretary RN Choubey said. The civil aviation secretary said that despite the duty hike on aviation fuel, it is “significantly cheaper” than petrol and diesel at present. <br/>
https://portal.staralliance.com/imagelibrary/news/hot-topics/2016-03-03/general/india-airlines-protest-fuel-price-hike-warn-of-cci-action
https://portal.staralliance.com/imagelibrary/logo.png
India: Airlines protest fuel price hike, warn of CCI action
Leading domestic airlines demanded a rollback of a sudden 12% hike in ATF prices announced by oil companies Tuesday and warned that they would be compelled to approach the Competition Commission of India (CCI) on such “non-transparent” changes. Aviation fuel costs account for over 40% of an airline’s cost of operations, and hence could impact air fares. The govt said that part of the hike in ATF prices was due to an increase in excise duty on aviation fuel. “Out of the total 11.5% hike, 5% increase is on account of an increase in the input costs of ATF and the rest 6.5% is on account of excise duty (hike on ATF),” Civil Aviation secretary RN Choubey said. The civil aviation secretary said that despite the duty hike on aviation fuel, it is “significantly cheaper” than petrol and diesel at present. <br/>
