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Monday, 30 June 2014

Aviation Ministry working on quick boost to the sector

New Delhi: The Civil Aviation Ministry is working on a short-term strategy to re-energise the sector.

“We feel that Aviation, as a sector, is nowhere near its potential. We are setting some goals to realise it,” Ashok Gajapathi Raju, the newly appointed Civil Aviation Minister, said at a press conference called to announce the entry of Air India into Star Alliance. The Minister, however, declined to get into specifics, saying these will be laid out in the next few days.

Last Saturday, the Minister was present at a meeting with Prime Minister Narendra Modi where issues relating to infrastructure, including aviation, were highlighted. He said while a number of issues, including Air India, came up at the meeting, no decisions were taken.


The Minister admitted that taxation of aviation fuel (ATF) is on the higher side and needs to be lowered. Apart from central levies, various States impose sales tax on ATF which varies from 4 per cent to over 30 per cent. “We are trying to convince States to lower the taxes,” he said.
Read news in full 24/06/14 Business Line
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