New Delhi: The top bosses of India’s airlines will meet civil aviation
minister P. Ashok Gajapathi Raju tomorrow to discuss junking restrictive
rules for flying abroad and high taxes levied on fuel.
According to civil aviation ministry officials, top officials from Jet Airways, SpiceJet, IndiGo, Air India, AirAsia India, GoAir and soon-to-be-launched Vistara (Tata-SIA joint venture) will all be present at the meeting.
“The minister has called this meeting to discuss issues such as high taxation on jet fuel with top airline officials,” said a senior civil aviation ministry official.
Sources said the airlines want to discuss steps necessary to slash aviation turbine fuel (ATF) prices by cutting taxes. The Indian aviation sector has suffered record losses on the back of predatory pricing, high fuel costs and airport taxes.
Airlines are likely to demand a cut in taxes on jet fuel. Jet fuel constitutes about 40-45 per cent of the total cost of an airline. The airlines may also request aircraft engines to be exempt from customs duty, the officials said. The exemption was withdrawn in 2012.
Airlines are also planning to speak to the minister about doing away with the 5/20 rule.
Raju had earlier agreed that the 5/20 rule for airlines was antiquated and should be done away with, but had not set any timeline for it.
Read news in full 22/09/14 The Telegraph
According to civil aviation ministry officials, top officials from Jet Airways, SpiceJet, IndiGo, Air India, AirAsia India, GoAir and soon-to-be-launched Vistara (Tata-SIA joint venture) will all be present at the meeting.
“The minister has called this meeting to discuss issues such as high taxation on jet fuel with top airline officials,” said a senior civil aviation ministry official.
Sources said the airlines want to discuss steps necessary to slash aviation turbine fuel (ATF) prices by cutting taxes. The Indian aviation sector has suffered record losses on the back of predatory pricing, high fuel costs and airport taxes.
Airlines are likely to demand a cut in taxes on jet fuel. Jet fuel constitutes about 40-45 per cent of the total cost of an airline. The airlines may also request aircraft engines to be exempt from customs duty, the officials said. The exemption was withdrawn in 2012.
Airlines are also planning to speak to the minister about doing away with the 5/20 rule.
Raju had earlier agreed that the 5/20 rule for airlines was antiquated and should be done away with, but had not set any timeline for it.
Read news in full 22/09/14 The Telegraph
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