Why Airfares Are So High: ATF Costs, Taxes & Competition Impacting Flight Prices in India Table of Contents Introduction: Why Are Airfares So Expensive? Understanding ATF: The Costliest Component of Flying The Role of VAT: How State Taxes Drive Up Prices Regulatory Measures: How the Government Oversees Airfares The Kumbh Mela Controversy: Surge Pricing Under Scrutiny The Role of Competition: Can More Airlines Lower Fares? Aircraft Leasing and Its Impact on Ticket Prices Future of Airfare in India: What’s Next? Conclusion: A Roadmap to Affordable Air Travel Frequently Asked Questions (FAQs) 1. Introduction: Why Are Airfares So Expensive? Why Are Airfares So Expensive? For most travelers, booking a flight often feels like a costly affair. But why are airfares so high? A key reason is Aviation Turbine Fuel (ATF), which makes up around 45% of airfare costs , as revealed by Civil Aviation Minister Ram Mohan Naidu. Additionally, some states, such as Tamil Nadu, impo...
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