Civil aviation ministry likely to probe ATF increase

New Delhi: Shaken by the massive increase in charges levied by airport operators on the supply of aviation turbine fuel (ATF) by oil companies, domestic carriers and the Federation of Indian Airlines (FIA) have requested the civil aviation ministry to look into the matter. This is because higher charges are ultimately passed on to airlines in terms of higher ATF prices.
In the last few months, airport operators have substantially raised the charges.
In Delhi and Mumbai, throughput charges have been increased to Rs 280 a kilolitre from Rs 58 a kilolitre. In Kolkata, these tariffs have gone up to Rs 1,000 a kilolitre from Rs 58 a kilolitre, and in Chennai to Rs 1,200 a kilolitre from Rs 58 a kilolitre. Airlines have complained that throughput charges have pushed the already high ATF prices up.
According to an industry source, oil companies never provide a break-up of ATF prices and, therefore, it was very easy to pass on the extra charges they have to pay to the airport authorities to airlines.
Airline companies have written to the ministry that throughput charges have gone over the roof after the Airports Authority of India (AAI) started auctioning the hydrant infrastructure to oil companies in February this year.
20/06/07 Atreyee Dev Roy & Sunny Verma/Financial Express

To Read the News in full at Source, Click the Headline

Categories: General Aviation Jun 2007