Jet fuel prices top on airlines' worry list

The aviation industry considers spiraling Aviation Turbine Fuel (ATF) prices as the biggest deterrent for growth. Which is perhaps why the Federation of Indian Aviation (FIA), an apex industry body formed by scheduled carriers in India, has sought several relief measures from the government in its Budget recommendations this time.
Pointing out that ATF rates for domestic operations within India are priced 70-90 per cent higher than international benchmarks, the FIA has sought reduction in excise duty and sales tax to 4 per cent each besides halving of customs to 5 per cent.
As of now, the ATF prices for domestic operations include 10 per cent customs duty, 8 per cent excise and sales tax averaging across the country at 23 per cent besides the throughput fees charged by the airport operators and marketing margins by oil companies.
Since Civil Aviation Minister Praful Patel has already supported these demands in his meetings with his counterpart in the petroleum ministry, the ball is now in the finance minister's court.
11/12/07 Sindhu Bhattacharya /DNA Money/Sify

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Categories: General Aviation Dec 2007