New Delhi, October 6: With the conflict in the Middle East continuing to date, a industry body representing three major domestic airlines- Air India, IndiGo and SpiceJet- has submitted a letter to Union Civil Aviation Minister Ram Mohan Naidu seeking immediate financial relief to counter soaring operational costs. With prolonged airspace restrictions, especially by Pakistan, and volatile Aviation Turbine Fuel (ATF) price hikes due to the West Asia conflict, the Federation of Indian Airlines (FIA) is urging the Central government to extend relief on landing and parking fees, release stuck credit lines and to change the excise duty structure for ATF as airlines continue to bleed money.
Key Demands & Financial Relief Proposals
In its formal communication to the Ministry of Civil Aviation (MoCA), the FIA outlined specific intervention measures to ease extreme cost pressures on Indian commercial airlines:
- Extension of Landing & Parking Charge Relief: The industry body asked the Ministry to bring back and extend the 25% discount on airport landing and parking fees for domestic flights. The earlier discount ended on July 7, 2026, but airlines say ongoing disruptions mean they still need this support until flight routes return to normal.
- Recalibration of ATF Excise Duty: The FIA wants the government to change how excise duty on jet fuel is set. Instead of the current system, where taxes go up as fuel prices rise, they suggest a fixed tax rate. This would help protect airlines from sudden jumps in oil prices.
- Release of Sanctioned Liquidity: Airlines asked the Ministry to help speed up the release of remaining support funds from government-backed emergency credit schemes. They said delays in processing these funds have caused serious cash flow problems.
Normally, jet fuel makes up 30% to 40% of an Indian airline’s total costs. But because of longer flight routes, higher refining costs, and a weaker rupee, fuel now accounts for 55% to 60% of their expenses, with no relief in sight.
“Airlines duly recognise the support and effort put in by MOCA with respect to the reduction of landing and parking charges by 25% for domestic flights for three months. The said order was issued for 3 months and had expired in the month of July 7, 2026. With the West Asia conflict continuing, airlines are facing significant additional costs arising from airspace restrictions, longer flight routings, additional crew costs, operational disruptions, rupee depreciation and elevated fuel prices,” the FIA letter to the civil aviation minister read.
“FIA requests MOCA to extend the 25% pricing reduction till such time the West Asia crisis settles down and airline operations are reverted to near normalcy,” it added.
“Such measures would provide much-needed support to the aviation sector, help preserve affordable air travel for passengers, and enable airlines to continue contributing to India’s economic growth and connectivity objectives despite the challenging operating environment. If timely relief is not available, the airlines may be compelled to withdraw from several unsustainable routes,” it concluded.
