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

Eight private airlines, including Jet Airways and Kingfisher, had on Fridaysaid they would stop domestic operations for a day on August 18 to pressure thegovernment for a bailout and threatened an indefinite suspension if theirdemands were not met.

The strike call ran into opposition almost immediately, when IndiGo announcedits decision to withdraw on Saturday and SpiceJet followed suit early Sundayevening.

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 hadgiven the government the impression that the airlines wanted bailout packages,an issue, they said, was never discussed at FIA’s .

What domestic airlines wanted, the low cost carriers said, was that AviationTurbine Fuel (ATF), which accounts for 40 per cent of carriers’ operationalcost, should be notified under the declared goods category, which means it willattract a uniform tax of 4 per cent across the country instead of varying ratesthat are as high as 30 per cent in some states.

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

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

“If the airlines do not confirm compliance within 48 hours, they mayattract legal action as provided in the Aircraft Act/Rules and relevantregulations,” the release said.

The strike call did not receive support from any quarter. The Civil AviationJoint Action Front (CAJAF), formed by Air Corporation Employees’ Union andAviation Industry Employees’ Guild, also condemned the strike call.