New Delhi: The government on Tuesday expressed concern over the financial health of domestic airlines but ruled out plans of extending financial package to budget carriers.
However, Minister of State for Civil Aviation Mahesh Sharma said state governments have been requested to reduce value added tax (VAT) on ATF (aviation turbine fuel) as it constitutes a significant part of an airline's total operational costs.
"Government is concerned over financial health of all airlines including budget airlines. No financial package is planned for budget airlines by the government," he said in a written reply to the Rajya Sabha.
Mr Sharma was responding to a query on whether the government is concerned over financial distress of budget carriers and is planning any package for their survival.
17/03/15 PTI/NDTV
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However, Minister of State for Civil Aviation Mahesh Sharma said state governments have been requested to reduce value added tax (VAT) on ATF (aviation turbine fuel) as it constitutes a significant part of an airline's total operational costs.
"Government is concerned over financial health of all airlines including budget airlines. No financial package is planned for budget airlines by the government," he said in a written reply to the Rajya Sabha.
Mr Sharma was responding to a query on whether the government is concerned over financial distress of budget carriers and is planning any package for their survival.
17/03/15 PTI/NDTV
