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(You can now subscribe to our(You can now subscribe to our Economic Times WhatsApp channelThe government may ask airlines to review surge charges and additional fares if crude oil prices remain stable over a longer period, Civil Aviation Minister K Ram Mohan Naidu said on Thursday.Currently, the Centre reviews Aviation Turbine Fuel (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 the ongoing US-Iran war Naidu said the Centre was closely monitoring ATF prices and was in discussions with airlines to assess whether the recent decline in prices was sustainable.
"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 told reporters.He highlighted that the past few months had been critical for the aviation sector and any decision on fare-related charges would depend on the stability of fuel prices.
"Once we see that this is there for the longer time, then obviously we are going to talk to them and in terms of surcharges or the additional prices that we are seeing at this moment, then definitely we will work into bringing it down also," he said
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The government may ask airlines to review surge charges and additional fares if crude oil prices remain stable over a longer period, Civil Aviation Minister K Ram Mohan Naidu said on Thursday.Currently, the Centre reviews Aviation Turbine Fuel (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 the ongoing US-Iran war Naidu said the Centre was closely monitoring ATF prices and was in discussions with airlines to assess whether the recent decline in prices was sustainable."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 told reporters.He highlighted that the past few months had been critical 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 was quoted by ANI as saying.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 The minister highlighted that the government is monitoring and would like to see for a little bit more on how the clarity or how the stability is happening in this sector."Once we see that this is there for the longer time, then obviously we are going to talk to them and in terms of surcharges or the additional prices that we are seeing at this moment, then definitely we will work into bringing it down also," he said
