India, April 29 -- The Federation of Indian Airlines (FIA), representing Air India, IndiGo and SpiceJet, has warned the government of flight cancellations and said the airline industry is on the verge of "stopping operations" due to the surge in aviation turbine fuel (ATF) prices, in a letter dated April 26 seeking urgent government intervention ahead of the next ATF revision on May 1. The FIA said the current ad hoc pricing structure-with domestic and international ATF rates treated differently-was creating a "severe imbalance" in operations and rendering airline networks "unviable and unsustainable."

"Any ad hoc pricing (domestic vs international) and/or irrational increase in the price of ATF will result in insurmountable losses for t...