New Delhi: After effecting a string of reforms to help the ailing Indian civil aviation sector, Civil Aviation Minister Ajit Singh has said he is hopeful that high jet fuel cost and passenger fares will come down as and when government places aviation turbine fuel (ATF) on the notified product list, which will cut down upon the state sales tax levied on the fuel.
"I am hopeful that the ATF can be brought in the (notified product) list. The ministry has already taken up the issue with other ministries and has also held discussions on the issue," Ajit Singh told IANS in an interview.
"Hopefully we may get it through. On the other hand, I have urged the state chief ministers to voluntarily reduce state tax on the ATF to encourage more airlines to fly to their cities and offer resonable fares on the routes which is sustainable for them and the passengers," he added.
The reform measure will not only help airlines to save on cost, it will also augument passenger traffic, as dometic carrier's will then have an ability to bring down fares on a competitive basis.
Fuel prices which comprises about 50 percent of the operating costs of airlines in India, has dented the sector, as major airlines bleed under the high state sales tax regime.
30/06/13 IANS/NewsTrack
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"I am hopeful that the ATF can be brought in the (notified product) list. The ministry has already taken up the issue with other ministries and has also held discussions on the issue," Ajit Singh told IANS in an interview.
"Hopefully we may get it through. On the other hand, I have urged the state chief ministers to voluntarily reduce state tax on the ATF to encourage more airlines to fly to their cities and offer resonable fares on the routes which is sustainable for them and the passengers," he added.
The reform measure will not only help airlines to save on cost, it will also augument passenger traffic, as dometic carrier's will then have an ability to bring down fares on a competitive basis.
Fuel prices which comprises about 50 percent of the operating costs of airlines in India, has dented the sector, as major airlines bleed under the high state sales tax regime.
30/06/13 IANS/NewsTrack
