Our expansion plans will take a hit due to ATF duty, say airlines

Say the move will make international flights uncompetitive, seek rollback

Domestic airlines are seeking a rollback of 11 per cent basic excise duty on aviation turbine fuel (ATF) for international flights. The additional charge has been levied by one of the three state oil marketing companies (OMCs) since Friday.

Airlines feel that it will make international operations costlier and slow down their expansion. On July 1, a special additional excise duty of Rs 6 per litre was introduced on bulk export of ATF. This is not applicable to airlines. However, from July 1, one of the OMCs started levying 11 per cent basic excise duty on fuel purchased for international flights.