New Delhi: There will be no airlines in India to rise if the domestic airline ticket price limit does not increase because oil prices have jumped from $ 22 each barrel to $ 85 in the past eight months, the Ministers of Union Scindia said on Thursday.
In ‘Times Now Summit 2021’, he said the Turbine Aviation (ATF) fuel was around 40 percent of the airline’s cost structure in the country.
Domestic air travel became more expensive on August 12 this year when the aircraft ministry led up and above at the domestic rate of 9.83 to 12.82 percent.
The ministry has increased the lower limit for flight less than 40 minutes from Rs 2,600 to RS 2,900 – an increase of 11.53 percent.
The top cap for flight less than 40 minutes increased 12.82 percent to RS 8,800.
On Thursday, Scindia said, “Look at what happened at ATF prices.
Oil prices for the past eight months increased from $ 22 a barrel to $ 84.
So, the airline cost structure has risen four times.” “Add that Customs 11 percent and VAT charged by the state government within 1 percent to 30 percent.
How will the airline survive, unless (ATF) becomes economical?” He posed.
The reason for the airline ministry raises the tariff ribbon is that the airline must be given a pillow when there is a 400 percent leap in raw material prices.
“If you can’t give a 12.5 percent increase on the income side then you and I will not have airlines,” he added.
India has imposed the lower and upper limit for tariffs based on flight duration when the service continues on May 25, 2020, after covid locking two months.
The bottom hat is charged to help airlines that have struggled financially due to restrictions on the journey related to Coronavirus.
The top cap is worn so that passengers are not charged a large fee when demand for high chairs.
The caps mentioned by the government in the order does not include passenger security costs, the cost of developing users for the airport and GST.
This fee is added above when tickets are ordered.
Order August 12 also states that the airline ticket limit will remain valid for 30 days at a certain time.
On September 18, the ministry modified the 12th place, reducing the roll-over period from 30 days to 15 days.
Scindia said the airplane ministry tried to reduce ATF prices by asking the state government to reduce the accusations of their VAT.
“In the past four months, I have written to 25 main ministers to make them understand how this VAT resisted American connectivity.” During the last 40 days, Jammu and Kashmir, Andaman Islands and Nicobar, Ladakh, Uttarakhand, Himachal Pradesh and Haryana have lowered their VAT on ATF from the range of 25 to 28 percent with a range of 1 to 2 percent.
I salute the leadership of these countries, “he said.
Because of this, there are far greater connectivity to these countries in the past half a month, Scindia added.