Airline surge charges may be reviewed if ATF prices remain stable: Govt

Union Civil Aviation Minister K Ram Mohan Naidu said the government may ask airlines to review surge charges if fuel prices show long-term stability. The Centre is monitoring ATF prices and is in talks with airlines to assess the recent decline.

The Union government may ask airlines to review surge charges and additional fares if fuel prices remain stable over a longer period, Civil Aviation Minister K Ram Mohan Naidu said on Thursday.

Speaking with reporters, Naidu said the Centre was closely monitoring aviation turbine fuel (ATF) prices and was in discussions with airlines to assess whether the recent decline in prices was sustainable. Currently government reviews ATF prices on a fortnightly basis, based on movement of global crude prices. Besides it has also created a Rs 10,000 crore price stabilisation fund to support airlines in times of distress due to West Asia crisis.

"Secondly, now that we are seeing prices coming down, we still have to see if this is a long-term reduction or if it is sudden, and we are talking to the airlines on this," the minister said.

He said the past few months had been significant for the aviation sector and any decision on fare-related charges would depend on the stability of fuel prices.

"The last 4 months have been very important for the airlines... Once we are clear that price stability will continue for a long time, we will talk to them and work towards reducing the surge charges or the extra prices we are seeing right now," Naidu told ANI.

Government Measures to Address Fuel Costs

Highlighting the government's efforts to address concerns related to fuel costs, the minister added, "In the case of ATF, we have also provided a price stabilisation fund of Rs 10,000 crore."

"So you can see how important the Indian government is considering this issue right now," he noted.

Amid the ongoing geopolitical crisis, the government has capped ATF prices for domestic scheduled operators, reduced airport charges, and extended support under the Emergency Credit Linkage scheme. (ANI)

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