Airspace stimulus to save over Rs 1,000-crore in jet fuel costs in FY21

Aviation turbine fuel accounts for 35-40 per cent of the total operating cost of an Indian airline

The move to open up air space, which was earlier reserved for the Indian Air Force (IAF), to civilian air traffic has shortened several domestic routes and reduced the fuel cost for carriers. With this, government estimates suggest a saving of more than Rs 1,000 crore in jet fuel expenses for airlines during the current financial year.

Opening up of the airspace available with armed forces was among the post-Covid relief measures announced by Finance Minister Nirmala Sitharaman for the stressed aviation sector awaiting a stimulus package.

Aviation turbine fuel accounts for 35-40 per cent of the total operating cost of an