New Delhi: Stating that the turnaround plan for the domestic state-owned carrier, Air India, was proceeding according to the plan and the Maharaja was all set to return to operating profits this fiscal, the Economic Survey on Wednesday said there was an urgent need to rationalise the tax regime on aviation turbine fuel (ATF) and high operating cost environment.
``There is need to rationalise the tax regime, particularly value added tax on ATF which is in the range of 20-30 per cent in most of the States,’’ the survey tabled in Parliament said. ``The high operating cost environment owing to high and rising cost of ATF, coupled with rupee depreciation, is making operations unviable for carriers in India.
Fuel prices for the airlines in the country are higher by at least 40 per cent than in competing hubs in the region such as Singapore, Hong Kong, and Dubai and these need to be rationalised.
27/02/13 The Hindu
