Airlines need to review fare structure

New Delhi: Airlines need to review their fare structure so as to cover the cost of operations, the Economic Survey 2011-12 tabled in Parliament on Thursday states.
The Survey adds that the Working Group headed by the Secretary Civil Aviation, which made the recommendation on need to review airfare structure, also decided that an economic regulatory framework may be formulated with regard to excessive fares/pricing by May 31 this year.
The Group also recommended that State Governments rationalise value-added tax on aviation turbine fuel, foreign airlines be permitted to invest in domestic airlines and direct import of ATF by airlines for their own consumption be allowed.
“The Working Group has also decided that airlines should be asked to prepare their turnaround plans, which would be examined by the concerned departments of Government separately for each airline,” the Survey states.
15/03/12 Business Line

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Categories: Indian Aviation- In General Mar 2012