Air travel may cost more this festive season, as the government has said it will not cap airfares but will advise airlines to keep prices reasonable. However, Civil Aviation Minister K Rammohan Naidu also said aviation companies’ operating costs have risen due to higher fuel costs. Talking to reporters on the sidelines of signing pacts for the next phase of Udaan, the minister said that in the past also, the government has handled the price situation in terms of festivals or important events.
“We engage with the airlines continuously; we also have regular meetings with them. And we definitely point out to them that during this festive season, you have to ensure that the fair prices are kept at a reasonable level so that the people who want to travel, especially in these important times, get to see the benefit,” the minister said.
Naidu said that the government has also handled price issues during festivals and other important events.
West Asia crisis
Naidu also said that the ongoing West Asia crisis has driven the Aviation Turbine Fuel (ATF) prices forward. Fuel accounts for a massive portion of an airline’s operating expense structure.
“This is not necessarily because of the festive season or anything, but there is an ongoing crisis situation,” he said.
The minister said ATF makes up 40 to 43 per cent of airfares and even a small rise in fuel costs directly pushes up ticket prices.
Government extends ECGLS scheme
Naidu also said the government has extended the ECGLS (Emergency Credit Line Guarantee Scheme). He said that the credit guarantee scheme was also done through which 150 crores have already been given to SpiceJet, and the rest is something the organisation, along with the bank, has to work out so that the scheme is in place.
“They need to get the money, and our major priority right now is to ensure the passengers shouldn’t face any inconvenience, the safety shouldn’t be compromised at any cost in terms of operations, and then smooth operations are sustained within the airline,” he said.
The minister also said the security ecosystems for the hub-and-spoke model flights have been thoroughly revised and strengthened to prevent any lapses in the future.
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