ID :
24762
Thu, 10/16/2008 - 10:02
Auther :
Shortlink :
http://m.oananews.org//node/24762
The shortlink copeid
Govt offers help to airlines; awaits panel report on bailout
Amitabh Roychowdhury
Hyderabad, Oct 15 (PTI) The government can help cash-starved airlines by cutting taxes on fuel or reducing charges for landing, parking and route navigation, but would wait for an official panel to make its recommendations, Civil Aviation Minister Praful Patel said Wednesday.
"Government is sensitive to the problem. At a meeting
with the Prime Minister, I have already given an overall
picture to him, after which a committee was constituted. But
its recommendation will take sometime," he told reporters
here.
Airlines, both private and state-owned that are already
facing high fuel costs, are now reeling under the effects of
the global financial crisis with drop in premium air traveller
numbers.
"We can reduce fuel bills by cutting taxes or ask oil
companies to cut base price for airline industry, landing,
parking and route navigation charges could also be reduced for
a small period of time," said Patel, who was here for the
India Aviation-2008, civil aviation expo.
The airlines have sought a bailout package worth Rs 4,750
crore (US$110.852) to tide over the crisis spawned by fuel
costs and poor load factor.
"We need a consensus on all these things," Patel said,
adding that he was "disappointed over the approach of some
other ministries which are associated with the entire process
(on reducing taxes on Aviation Turbine Fuel) and also with
state governments (also on reducing sales tax or Value Added
Tax)."
"Many departments are not taking a positive approach. If
tomorrow no plane flies on the Indian skies, who is there to
answer. There is a bad patch in the industry and it needs to
be resolved," he said.
Patel said that many airlines had complained to him that
banks and lending institutions were not happy to lend to them.
"This will be on top of my agenda. I will meet the
Finance Minister, will also meet bankers and ask them not to
put undue pressure on airline industry, because it is
infrastructure.
"They should keep some open window for the sector."
The panel appointed to look into the bailout plan for
airlines has in turn constituted a sub-committee, which is
looking into the finer details of the Rs 4,750 crore package
sought by the industry.
The sub-committee is expected to submit its report to the
panel shortly, after which a comprehensive report would be
presented to the Aviation Ministry.
The crisis in the industry has already forced two of the
largest players Jet Airways and Kingfisher Airlines to strike
an operational alliance, prune staff strength and routes to
cut costs.
Earlier inaugurating the expo, Patel said India provided
a huge investment opportunity in the aviation sector, and that
about 200 to 300 billion dollars would be required in the next
10-15 years for development of aviation infrastructure.
There were about 400 old or unused airports in the
country that could be brought into operation in a phased
manner, he said.
Apart from regular air traffic, helicopter tourism,
general and business aviation should also be exploited as they
held huge potential, Patel noted. PTI ARC
Hyderabad, Oct 15 (PTI) The government can help cash-starved airlines by cutting taxes on fuel or reducing charges for landing, parking and route navigation, but would wait for an official panel to make its recommendations, Civil Aviation Minister Praful Patel said Wednesday.
"Government is sensitive to the problem. At a meeting
with the Prime Minister, I have already given an overall
picture to him, after which a committee was constituted. But
its recommendation will take sometime," he told reporters
here.
Airlines, both private and state-owned that are already
facing high fuel costs, are now reeling under the effects of
the global financial crisis with drop in premium air traveller
numbers.
"We can reduce fuel bills by cutting taxes or ask oil
companies to cut base price for airline industry, landing,
parking and route navigation charges could also be reduced for
a small period of time," said Patel, who was here for the
India Aviation-2008, civil aviation expo.
The airlines have sought a bailout package worth Rs 4,750
crore (US$110.852) to tide over the crisis spawned by fuel
costs and poor load factor.
"We need a consensus on all these things," Patel said,
adding that he was "disappointed over the approach of some
other ministries which are associated with the entire process
(on reducing taxes on Aviation Turbine Fuel) and also with
state governments (also on reducing sales tax or Value Added
Tax)."
"Many departments are not taking a positive approach. If
tomorrow no plane flies on the Indian skies, who is there to
answer. There is a bad patch in the industry and it needs to
be resolved," he said.
Patel said that many airlines had complained to him that
banks and lending institutions were not happy to lend to them.
"This will be on top of my agenda. I will meet the
Finance Minister, will also meet bankers and ask them not to
put undue pressure on airline industry, because it is
infrastructure.
"They should keep some open window for the sector."
The panel appointed to look into the bailout plan for
airlines has in turn constituted a sub-committee, which is
looking into the finer details of the Rs 4,750 crore package
sought by the industry.
The sub-committee is expected to submit its report to the
panel shortly, after which a comprehensive report would be
presented to the Aviation Ministry.
The crisis in the industry has already forced two of the
largest players Jet Airways and Kingfisher Airlines to strike
an operational alliance, prune staff strength and routes to
cut costs.
Earlier inaugurating the expo, Patel said India provided
a huge investment opportunity in the aviation sector, and that
about 200 to 300 billion dollars would be required in the next
10-15 years for development of aviation infrastructure.
There were about 400 old or unused airports in the
country that could be brought into operation in a phased
manner, he said.
Apart from regular air traffic, helicopter tourism,
general and business aviation should also be exploited as they
held huge potential, Patel noted. PTI ARC
