Representative body of airlines set up

With the Civil Aviation Ministry warning airlines to avoid losses and maintain their financial strength, major carriers have set up a representative body to take up common issues with the government and also sort out problems among themselves.

The industry body, Federation of Indian Airlines, was formally set up at a meeting of CEOs of major carriers earlier this week in Mumbai where several issues including those concerning the fare structure came up for discussion.

At this meeting, the full-service carriers sought a check on fare reductions announced by the low-cost carriers (LCCs), but there were major differences of opinion on the matter, industry sources said.

The full-service legacy carriers also wanted a hike in the fuel surcharge of Rs 750 per passenger being charged now, which was stoutly opposed by the LCCs whose representatives said the surcharge could not be hiked further as the global crude prices were coming down. The FIA, headed by Air India CMD V Thulasidas, finally concluded that since there was no consensus on the fare structure, the issue could not be taken up by the airlines body, the sources said.

However, the meeting witnessed unanimity on issues relating to aviation infrastructure and taxes, especially those levied on the Aviation Turbine Fuel (ATF), and decided to take it up with the government and other agencies concerned.

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