Hyderabad: Union Civil Aviation Minister Hardeep Singh Puri on Saturday said there was no need for any contingency plan for the aviation sector in the wake of the coronavirus outbreak as the impact of global contagion was a only a brief passing phase.
"No one has asked for any contingency plan or a bailout package even though issues like bringing Aircraft Turbine Fuel (ATF), which forms 40 per cent of the operational cost of an airline, under the GST, were matters the Ministry has been dealing with as we meet the stake-holders to understand their issues on a regular basis," Puri said after attending the CEOs forum deliberations held at Wings India 2020 summit.
The minister assured that bringing ATF under the GST regime, extending credit for one month to the airlines by the oil companies or adjusting the rates every 15 days instead of one month etc., would be done soon even though these issues were not specific to the current situation. The meeting has discussed matters like aviation financing and leasing, capacity building, aviation safety and security, UAVs among other things, according to him.
The Civil Aviation Minister asserted that the agencies under his ministry were able to effectively monitor airports against the spread of new coronavirus contagion without causing any uncertainty and panic in the minds of the people.
"There may be a 15-20 per cent drop in domestic passenger traffic due to the virus threat but it is a temporary passing phase. We not only overcome this challenge but will also emerge as a robust aviation market in the future," Puri said. He added that the country will have 1,200 aircraft in next few years, going by the orders placed by some Indian operators.
14/03/20 Business Standard
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"No one has asked for any contingency plan or a bailout package even though issues like bringing Aircraft Turbine Fuel (ATF), which forms 40 per cent of the operational cost of an airline, under the GST, were matters the Ministry has been dealing with as we meet the stake-holders to understand their issues on a regular basis," Puri said after attending the CEOs forum deliberations held at Wings India 2020 summit.
The minister assured that bringing ATF under the GST regime, extending credit for one month to the airlines by the oil companies or adjusting the rates every 15 days instead of one month etc., would be done soon even though these issues were not specific to the current situation. The meeting has discussed matters like aviation financing and leasing, capacity building, aviation safety and security, UAVs among other things, according to him.
The Civil Aviation Minister asserted that the agencies under his ministry were able to effectively monitor airports against the spread of new coronavirus contagion without causing any uncertainty and panic in the minds of the people.
"There may be a 15-20 per cent drop in domestic passenger traffic due to the virus threat but it is a temporary passing phase. We not only overcome this challenge but will also emerge as a robust aviation market in the future," Puri said. He added that the country will have 1,200 aircraft in next few years, going by the orders placed by some Indian operators.
14/03/20 Business Standard
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