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Five domestic airlines allowed to import aviation fuel

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Press Trust of India New Delhi

Those given permission to import ATF include Kingfisher Airlines, SpiceJet, IndiGo, Go Airlines and Air India, Singh said in a written reply to a question of BJP MP Rajiv Pratap Rudy in Rajya Sabha.

Kingfisher has been allowed to import five lakh kilolitres of ATF worth Rs 2,233 crore; SpiceJet 50,000 kilolitres worth Rs 235 crore; IndiGo 7.15 lakh kilolitres worth Rs 3,200 crore, Go Airlines two lakh kilolitres worth Rs 1,200 crore and Air India one lakh kilolitres worth Rs 503.93 million.

He said the validity of the import authorisation is for 18 months.

High taxes on ATF by the state, ranging from four per cent to 30 per cent, has been hitting the airlines hard as they have to spend more than 40 per cent of the operating cost on fuel.

 

They have been demanding reduction in sales taxes by the state government besides putting the ATF in declared goods category.

In reply to a separate question, Singh said that in 2010-11, only IndiGo, SpiceJet and Go Air had shown profit.

He said government has taken several measures to revive the aviation industry and ensure long term viability of the sector.

A working group has been constituted under the Chairmanship of Secretary Civil Aviation to discuss the factors causing stress in civil aviation and suggest remedial measures.

"Based on the recommendations, the issue of rationalisation of VAT on ATF has been taken up with the state governments. The ministry has undertaken a study of ATF pricing and fiscal structure through experts. The report has been submitted to the Civil Aviation Ministry and ECB upto USD one billion has been permitted for the airlines to meet their working capital requirement," Singh said.

  

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First Published: Aug 14 2012 | 3:20 PM IST

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