Patel backs relaxed overseas flying norms

New Delhi: Civil aviation minister Praful Patel on Monday said the recent hikes in aviation turbine fuel (ATF) prices are playing 'havoc' with airlines' bottomlines. In a bid to save this industry, Patel will meet PM and FM to seek duty and tax cuts on ATF and also push for relaxation of norms that currently allow only five-year-old airlines to fly abroad.
"Pushing for early relaxation of rules so that airlines can fly abroad on case to case basis is part of the things we are looking at for providing some relief to airlines. I am going to ask the PM and FM to give some relief to this sector as flying is no longer a luxury but a necessity," he said.
And the distress signs are already showing. "Airlines have informally conveyed that both number and frequency of flights could be affected. In present situation, airlines want to fly less as flying more means losing more money," Patel said.
While ATF prices have been increased by five to six times from 2004, ticket prices are much lower compared to four years back. Fuel price hike has made "very robust growth becoming very modest," with passenger traffic recording a single digit growth in April 2008 over April 2007.
03/06/08 Times of India

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Categories: Indian Aviation- In General Jun 2008