High ATF prices put airline routes at risk as West Asia crisis raises costs

New Delhi: Indian airlines have cautioned the civil aviation ministry that continued high operating costs triggered by elevated jet fuel prices, airspace restrictions, longer flight routes, additional crew costs and a weaker rupee are putting significant pressure on their finances and could force them to withdraw from several "unsustainable" routes unless the government gives timely relief.

Civil aviation minister K Rammohan Naidu on Tuesday said his ministry is in talks with airlines and oil marketing companies (OMCs) over the steep rise in jet fuel prices triggered by the West Asia crisis and may prepare a price stabilisation fund. "One of the most important things is how the West Asia crisis is putting a big burden on ATF prices," Naidu said. "We are in discussions with airlines and OMCs.

Meanwhile, under a new master plan, the Indira Gandhi International Airport will undergo a major expansion over the next decade to raise its annual passenger-handling capacity to around 125 million from the current 106 million, Pradeep Panicker, president and CEO, Delhi International Airport, said on Tuesday.


The expansion plan entails an investment of around ₹7,000 crore and includes terminal expansion, additional aircraft stands and a new automated people mover to connect different terminals. Parts of the plan will be implemented over the next five years, with the remaining work expected to be completed by 2036.