In light of high jet fuel costs resulting from the Gulf crisis, India’s air charter providers have urged the government to revise how non-scheduled operators are categorised under aviation turbine fuel (ATF) pricing, aiming to align their rates with those of scheduled airlines.

In a submission to the Ministry of Civil Aviation, the Business Aircraft Operators Association (BAOA) stated that the current approach focuses too heavily on perceived usage rather than the actual role of Non-Scheduled Operator Permit (NSOP) services. If accepted, the request would align ATF prices with the operational utility of NSOPs, rather than treating them as luxury air services.

Notably, the Centre has supported scheduled service providers—primarily airlines—against the impact of crude oil price volatility arising from the West Asia crisis. It had capped the increase in jet fuel prices for scheduled operators at 25 per cent, resulting in a lower effective price hike.

According to the BAOA’s submission, reviewed by businessline, NSOP services are a vital component of air transport, providing on-demand and last-mile connectivity, particularly in areas where scheduled airlines do not operate. Furthermore, the association noted that NSOP operators connect over 400 airfields, while scheduled airlines serve fewer than 150 airports.

As per Directorate General of Civil Aviation (DGCA) data as of February 28, 2026, there are 137 non-scheduled operators managing a total of 443 aircraft, including 223 helicopters and 220 fixed-wing aircraft. The BAOA emphasized that helicopters are used for emergency services, disaster response and connectivity in remote areas, while fixed-wing aircraft support air ambulances and regional connectivity.

However, the association argued that the view of NSOP operations as being mainly "luxury" is incorrect, adding that such use is limited and often linked to time-sensitive travel by officials and key personnel.

According to industry insiders, the Centre, via the Ministry of Civil Aviation, has executed various measures to cushion airlines against the sharp rise in operating costs driven by higher ATF prices, airspace restrictions and currency pressures. In the absence of such interventions, they suggested that airlines may have been compelled to implement steeper fare increases, reduce capacity, and rationalize routes to maintain financial viability.

Published on April 10, 2026