The finance ministry has no problems with rationalisation of taxes on aviation turbine fuel (ATF) to help the airline industry, Civil Aviation Minister Praful Patel said today.
“In two-three days, the finance ministry will take appropriate measures on the tax-side to help the airline industry,” he told reporters after meeting Finance Minister P Chidambaram.
“He (Chidambaram) certainly believes that there is a case for rationalisation of taxes, which may not have been the case in the past,” Patel added.
The finance minister, on his part, said that he has put a query to the petroleum ministry on taxes on ATF.
The meeting comes close on the heels of the benefits given by oil companies yesterday to airlines which have a total fuel bill of Rs 2,926 crore, around 72 per cent of which is defaulted.
According to the package, the dues will be cleared in six monthly instalments by March 2009. Current ATF purchases will get 90 days’ credit, supported by bank guarantees. Also, jet fuel price revisions will henceforth happen every fortnight.
Patel today admitted in the Lok Sabha that it may take another two months to make the recently-opened third runway at the Delhi airport fully operational.
“The runway doesn’t operate alone. It is linked with the Air Traffic Control (ATC) and other operational systems. There is a process of familiarisation undergoing now for the new runway. This will continue for the next one or two months. That’s the reason why it has been used only during the day. But in future it will be used even during night operations,” Patel said while replying to questions in the Lok Sabha.
The runway, which was inaugurated in September, ran into rough weather three days later when the instrument landing system (ILS), used to guide aircraft for landing, collapsed. Due to these and other operational problems, the new runway has only been operated for a limited period of the day since its being operational.
