Friday, August 31, 2018

Aviation ministry works on a package for airlines

New Delhi: With jet fuel or aviation turbine fuel (ATF) prices at four-year-high and rupee making fresh all-time lows frequently, Indian airlines are struggling to remain afloat amid spiralling operating costs. The aviation ministry is now working on a package to provide some relief to the finacially-stressed airline sector. It will seek finance ministry’s approval for the package, though an earlier request of getting jet fuel in lower GST slab was not approved.
Sources said the aviation ministry is going to seek lower excise duty on jet fuel (from 14% to 8%), allow overseas loans for working capital requirements and allow airlines to retain a certain component of Rs 130 per passenger security fee that each flyer pays to cover the cost of security equipment and personnel deployment at airports. “Discussions on various issues are going on. (We are) unable to provide specific input because it is work in progress,” aviation secretary R N Choubey said.
Aviation minister Suresh Prabhu and his deputy Jayant Sinha recently met finance Arun Jaitley. “We discussed a range of issues with the FM. We are hopeful of making progress on all those issues regarding the financial health of the aviation sector.”
31/08/18 Saurabh Sinha/Times of India

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