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The government is in discussion with both airlines and oil marketing companies (OMCs) to address the ongoing impact of West Asia crisis which is putting significant pressure on aviation turbine fuel (ATF) prices, said Union Civil Aviation Minister Ram Mohan Naidu.
Speaking to the media on the sidelines of the IQFM Symposium 2026, Naidu said rising ATF prices amid the West Asia crisis remain a key concern for the aviation sector. One of the most important things is the West Asia crisis and how it's putting a big burden on the ATF prices. But, we are still in discussion both with the airlines and also the OMCs. Let us see how the discussion unfolds, he said. His remarks come as IndiGo revised its fuel charges for all new bookings made from October 6, citing a sharp rise in ATF prices. The airline said higher fuel costs, coupled with recent geopolitical developments in West Asia, have pushed ATF prices to among their highest levels in the past decade. "The continuous rise in the fuel prices, with the latest month-on-month increase exceeding 14%, has taken ATF costs to levels that are amongst the highest in the last decade," IndiGo said in a statement. Addressing the event, Naidu said the government has supported regional air connectivity through the UDAN scheme by providing viability gap funding to airlines, helping make operations on otherwise commercially unviable routes sustainable. Through the scheme in the last 10 years, we have started 693 routes, he said. On strengthening domestic aviation manufacturing, the Minister said India is taking initial steps through joint ventures, while global aircraft manufacturers such as Airbus and Boeing are increasingly working with Indian MSMEs to improve product quality and move them up the value chain. I would say that even Airbus and Boeing, the way they are supporting the Indian MSMEs...because they have seen a strategic advantage in India right now, he said. He further highlighted that Indian companies currently manufacture around USD 4 billion worth of aerospace equipment and components, Naidu said, adding that the government is targeting an increase to USD 10 billion by the end of the decade. Almost USD 4 billion worth of equipment, manufacturing components are being done in the country today, and we have a target of reaching up to 10 billion by the end of the decade.So, these are big targets that we have in aviation, trying to capture the opportunity that we have by the demand that we have created in the country here today, he said. (ANI)
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