Jet chief wants tax on ATF cut

New Delhi: Jet Airways Chairman Naresh Goyal on Monday met Finance Minister P. Chidambaram and sought tax concessions on aviation turbine fuel (ATF) to tide over the financial crisis and the downturn that the civil aviation sector was facing.
Mr. Goyal, who heads the country’s largest private carrier, drew attention of the Finance Minister to a number of problems the carriers in the country were facing.
According to informed sources, the Jet chief is understood to have asked Mr. Chidambaram to consider the demand of airlines to rationalise taxation and levies on ATF, which has become one of the biggest issues that has burdened the carriers in India.
Jet fuel makes up for nearly 40 to 45 per cent of the total operational cost of a carrier.
Mr. Goyal’s meeting with Mr. Chidambaram came within days of his airline deciding to reinstate 800 employees, who were given termination letters citing mounting losses.
Jet alone had a total outstanding fuel bill of Rs. 859 crore — of which it had defaulted on payment of bills which were due on September 25 and October 5 this year.
21/10/08 Vinay Kumar/The Hindu

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Categories: Jet Airways Oct 2008