Air Ticket Price Cut: When will the airfare prices come down, Union Minister Scindia gave this answer
Air Ticket Price Cut: Even though the prices of petrol and diesel in the country are stable, but the price of airplane fuel ie ATF continues to rise. ATF prices have gone up by 91 per cent this year itself. Due to which plane tickets have become twice as expensive as compared to 2021. In such a situation, the passengers who had boarded the plane instead of the train due to the low fare, they are deducting the train ticket back.
Union Minister Jyotiraditya Scindia has given an answer regarding when will there be a reduction in plane tickets. Union Aviation Minister Jyotiraditya Scindia has said that the government will definitely re-assess the fare limit for domestic airlines if the situation improves in terms of fuel prices. The country’s aviation sector was adversely affected by the Corona virus epidemic and this sector is now on the path of recovery, especially in terms of the number of passengers.
There was a limit on rent in the epidemic
In view of the epidemic, the ministry has imposed limits on the fares of local airline companies. Scindia said that as of today, the airline’s fare limit is not very close to the lower portion and it is far from the upper limit. “I have seen things stabilizing and we will definitely look into it at an appropriate time,” the minister said. I am looking at the price of ATF and as soon as things get better, we will definitely reassess it.”
Prices have risen wildly since the Russo-Ukraine War
Aircraft fuel (ATF) prices have risen in recent months amid the Russo-Ukraine war. Although there has been some reduction in the fuel price in the country recently, it still remains above the pre-pandemic level. Scindia admitted that airlines are facing several structural issues. The Russo-Ukraine war has led to a rise in the ATF price and has increased from Rs 53,000 per kl in 2019-20 to around Rs 1,41,000 per kl last week.
ATF prices have decreased this month
This month, the ATF price has come down by about 16 per cent, or about Rs 21,000 per kilolitre, but it is still almost double compared to last year. “ATF accounts for 39 per cent of an airline’s cost. In such a situation, the effect can be understood by increasing the ATF from Rs 53,000 per kiloliter to Rs 1,20,000 per kiloliter. Hence, there are challenges before them from a structural point of view.
state deduct VAT
Scindia also urged various states and union territories to bring down the Value Added Tax (VAT) on aircraft fuel. VAT is 20 to 30 per cent in some states and union territories and many of them have reduced it. “After my request and explaining the economic benefits due to reduction in it, 16 out of 26 states (and union territories) have reduced VAT from 20 to 30 per cent to one to four per cent,” he said. Scindia said that he is working with other states and union territories to reduce VAT on ATF. Regarding air traffic, the minister said that the number of passengers will increase in the coming time.
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