Prime Minister Narendra Modi has laid emphasis on the financial revival of national carrier Air India and wants the entire aviation sector to truly benefit the common man instead of being perceived as only a medium of travel for the elite, sources said. The government is set to focus on the financial turnaround of Air India and ways and means to improve the functioning of the airline before any proposal for privatisation of the national carrier is even formulated or considered, sources said.
Incidentally, a key meeting of global airline grouping Star Alliance is scheduled very soon in London that will decide on whether Air India be admitted to the group.
In view of the financial stress affecting the sector, it also remains to be seen if the BJP-led NDA government bites the bullet in the forthcoming Union Budget and puts aviation turbine fuel (ATF) in the declared goods category that will ensure a low uniform sales tax rate of just four per cent on ATF. Such a move will be a huge financial relief for airlines since ATF accounts for about 45 per cent of the operating cost of airlines. The civil aviation ministry has always supported the move.
23/06/14 Asian Age
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Incidentally, a key meeting of global airline grouping Star Alliance is scheduled very soon in London that will decide on whether Air India be admitted to the group.
In view of the financial stress affecting the sector, it also remains to be seen if the BJP-led NDA government bites the bullet in the forthcoming Union Budget and puts aviation turbine fuel (ATF) in the declared goods category that will ensure a low uniform sales tax rate of just four per cent on ATF. Such a move will be a huge financial relief for airlines since ATF accounts for about 45 per cent of the operating cost of airlines. The civil aviation ministry has always supported the move.
23/06/14 Asian Age
