Pvt airlines will collapse soon if fuel price, taxes not cut: Pawar

New Delhi: Private airline companies will collapse in the next three months if aviation turbine fuel (ATF) prices and airport taxes are not reduced, said Union minister for agriculture and food supplies Sharad Pawar.
Pawar, the Nationalist Congress Party chief, is the mentor of civil aviation minister Praful Patel, who refused to play ball when private airlines threatened strike last week.
Patel had said there was no question of a financial bailout for private airlines. He went on to say the government was not even bailing out Air India.
Pawar was speaking with DNA in a freewheeling interaction on Wednesday.
When asked whether the government should accept their demand, the minister said, "It's impractical to expect them to compete in this environment."
"Of course, the government should reduce the taxes and ATF prices, which are extremely steep. How can they survive with these kind of taxes?" Pawar asked.
On the issue of financial bailout package for Air India, Pawar said that deserved to be looked at too.
"The government has not done anything for these organisations (referring to airline companies including Air India)," he said.
This is for the first time that a minister (Patel) has taken an initiative and convinced his colleagues about the significance of reviving the aviation and the infrastructure sector, said Pawar.
However, he indicated that financial assistance alone from the government will not help Air India, and that a significant fleet expansion must also be planned for it, among other measures.
06/08/09 Nivedita Mookerji/Daily News & Analysis

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Categories: Indian Aviation- In General Aug 2009