Minister for ending “plight” of airlines over high ATF prices

NEW DELHI: The time has come for the government to intervene and help the growing civil aviation industry in the wake of skyrocketing prices of aviation turbine fuel (ATF), Civil Aviation Minister Praful Patel said here on Friday.
“High prices of jet fuel have dealt a severe blow to the airlines. Air travel is no more a luxury but just another mode of travel. The aviation industry is an important contributor to the economic growth. All States and the Centre should pay urgent attention to the industry,” Mr. Patel told reporters here.
Favouring rationalisation of sales tax, excise and customs duty structure on ATF, he said that at Rs.61,000 a kilo litre, the ATF in India was costlier than in Singapore, where it cost Rs.32,000 a kilo litre. The ATF price constituted 15 to 20 per cent of the total cost of operation of an airline abroad. But in India, it had zoomed to 40 to 45 per cent.
10/05/08 The Hindu

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Categories: Indian Aviation- In General May 2008