Airlines want fuel price cut to global levels

New Delhi: The government can make the airline industry profitable overnight by reducing domestic aviation turbine fuel (ATF) prices to international levels — which are 65% cheaper.
The Federation of Indian Airlines (FIA) has identified high fuel prices as a key reason for the red ink splashed across the balance sheets of many major domestic airlines, and emphasised that bringing domestic prices on a par with international rates would lead to a 25% increase in bottomline of airlines.
In a recent communication to the government, FIA has called for a uniform value-added tax (VAT) of 4% on ATF across the country, halving excise duty to 4% and a reduction in customs duty.
Most Indian airlines, barring the government carriers, have been making losses in the recent years. The scenario would change if the fuel price is rationalised as per the long-standing demand of Indian airline companies, the association said.
08/05/07 Economic Times

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Categories: General Aviation May 2007