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India setting up the ATF price stabilisation fund is a very good solution to address the problem of higher jet fuel costs being faced by the domestic airlines, a senior IATA executive has said. While mentioning that the current jet fuel scenario globally is unprecedented in terms of the cost impact, Hemant Mistry, Director Energy Transition at IATA, cautioned that if the situation continues, there would have to be more flight reductions. The International Air Transport Association (IATA) represents over 370 airlines, including Air India, IndiGo, Air India Express and SpiceJet. The grouping accounts for around 85 per cent of the global air traffic. Mistry said the jet fuel situation in terms of cost impact is unprecedented. "If the situation continues, there will have to be more demand destruction... that is the only way to manage the situation, it is an extreme situation," he told PTI. Demand destruction broadly refers to a reduction in flights amid rising operational costs, drive
Domestic airlines will be able to buy aviation turbine fuel (ATF) at a fixed price of Rs 86.32 per litre for up to three years under a new government-backed price stabilisation scheme aimed at shielding carriers and passengers from a surge in global fuel costs. Under the voluntary scheme, participating airlines will pay the fixed free-on-board (FOB) benchmark price plus airport charges, oil company margins and applicable taxes, taking the effective selling price to about Rs 115 per litre in Delhi, Rs 114.5 in Mumbai and Rs 139 in Chennai, according to government officials. The benchmark compares with the current effective ATF price of about Rs 105 per litre in Delhi, which has remained frozen for more than two months after the government allowed only a partial pass-through of soaring global fuel costs triggered by the outbreak of the West Asia conflict in late February. While participating airlines will pay the fixed price, those not opting for the scheme will be charged prevailing
Akasa Air has set up an entity at the GIFT City in Gujarat to strengthen its aircraft financing and leasing activities. The nearly four-year-old carrier has established Akasa Air Leasing IFSC Private Limited (AALI) at Gujarat International Finance Tec-City (GIFT City), Gandhinagar. In a release on Friday, the airline said AALI office would play a pivotal role in advancing its aircraft financing strategy, enabling greater flexibility, cost efficiency, and enhanced access to global capital markets. "AALI is expected to finance a majority of the airline's aircraft over time while strengthening onshore leasing capabilities," the release said. Currently, Akasa Air has a fleet of 38 Boeing 737 MAX airplanes. It has placed an order for 226 such aircraft. Air India and IndiGo also have their aircraft leasing entities in the GIFT City.
Air India's board of directors met in the national capital on Thursday amid the loss-making airline facing multiple headwinds in the wake of the West Asia conflict. The meeting is expected to discuss various issues, including financials and cost-saving measures. Discussions related to the selection of a new CEO are also likely at the board meeting. Current CEO and MD Campbell Wilson will be stepping down later this year. Airspace curbs and higher jet fuel prices due to the West Asia conflict are adversely impacting the airline, which is in the midst of an ambitious transformation plan. Operational costs have gone up significantly in recent months for the carrier. Against this backdrop, the airline is mulling various cost-saving measures. Sources said the board meeting started after 11 am on Thursday. Specific details about the agenda for the meeting could not be ascertained. Air India board is chaired by Tata Sons Chairman N Chandrasekaran. Wilson, Singapore Airlines CEO Goh
ATSEPA, an electronic engineers' body at Airports Authority of India (AAI), has raised concerns over the proposed privatisation of air traffic control services, saying that shifting control away from the Authority without establishing an autonomous regulatory entity could be perceived as a policy decision that weakens India's national strategic capabilities. In a letter to Civil Aviation Minister K Rammohan Naidu on April 23, Air Traffic Safety Electronic Personnel Association (India) General Secretary YP Gautam said the matter warrants urgent reconsideration at the highest policy level. "The proposal to introduce private participation in Air Traffic Control services, without first operationalising an independent Air Navigation Services (ANS) structure, is viewed with grave concern," he said. Stating that the matter is not exploratory, he said the carving out of ANS (ATC + CNS) from AAI has already been "deliberated, accepted in principle, and partially implemented" during the tenur