High ATF prices put airline routes at risk

Indian airlines have warned the civil aviation ministry that soaring operating costs, driven by high jet fuel prices and other factors, are threatening the viability of several routes, potentially forcing airlines to abandon them unless timely government assistance is provided. Civil aviation minister K Rammohan Naidu disclosed on Tuesday that his ministry is engaged in negotiations with airlines and oil marketing companies to address the sharp escalation in jet fuel prices, largely due to the geopolitical crisis in the Middle East.

Naidu emphasized that the West Asia crisis is imposing a substantial burden on aviation turbine fuel (ATF) prices and that they are actively discussing stabilization measures with the concerned parties.

Separately, the Delhi International Airport is set for a substantial expansion over the next decade, aiming to boost its annual passenger-handling capacity to approximately 125 million from the present 106 million. This ambitious plan, outlined by Pradeep Panicker, president and CEO of the airport, will entail a significant investment of around ₹7,000 crore, encompassing terminal enhancements, additional aircraft stands, and the introduction of an automated people mover system to seamlessly connect various airport terminals.

Panicker revealed that the first phase of the expansion will be executed within the next five years, with the remaining construction scheduled to be finalized by 2036.