Domestic airlines call off strike

Pressured by low-cost carriers, the Federation of Indian Airlines has called off its decision to suspend domestic operations on August 18, two days after it was announced.

An FIA press release said the strike was being withdrawn "in view of the agitated public sentiment and potential inconvenience to thousands of passengers and the government's willingness to enter into dialogue".

Eight private airlines, including Jet Airways and Kingfisher, had on Friday said they would stop domestic operations for a day on August 18 to pressure the government for a bailout and threatened an indefinite suspension if their demands were not met.

The strike call ran into opposition almost immediately, when IndiGo announced its decision to withdraw on Saturday and SpiceJet followed suit early Sunday evening.

Earlier in the day, MDLR Airlines, which has three aircraft and flies to six destinations, and Paramount, which has a 2 per cent domestic market share, announced that they were not participating in the strike. Representatives of state-owned Air India, which is an FIA member, did not attend Friday's meeting and declined to be part of the strike from the start.

Private carriers account for over 80 per cent of the domestic airline market. Sources said low-cost carriers were peeved that the full-service carriers had given the government the impression that the airlines wanted bailout packages, an issue, they said, was never discussed at FIA's Friday meeting.

"We told the FIA that we will not be party to the strike. We want rationalisation of tax and made our point to the government," said Ajay Singh, director, SpiceJet Ltd.

What domestic airlines wanted, the low cost carriers said, was that Aviation Turbine Fuel, which accounts for 40 per cent of carriers' operational cost, should be notified under the declared goods category, which means it will attract a uniform tax of 4 per cent across the country instead of varying rates that are as high as 30 per cent in some states.

Airlines also wanted the parking and airport charges, which are 50 to 60 per cent higher than international levels and have pushed up their costs by $250 million annually, to be reduced.

On Saturday, the Directorate General of Civil Aviation asked the airlines to ensure that passengers get all their money back if flights were suspended on August 18 and threatened legal action if they disobeyed.

"If the airlines do not confirm compliance within 48 hours, they may attract legal action as provided in the Aircraft Act/Rules and relevant regulations," the release said.

The strike call did not receive support from any quarter. The Civil Aviation Joint Action Front, formed by Air Corporation Employees' Union and Aviation Industry Employees' Guild, also condemned the strike call.