Date:12/12/2007 URL: http://www.thehindu.com/2007/12/12/stories/2007121262412000.htm

Business

Address ATF issue meaningfully: Patel

Special Correspondent

Need for rationalising Central levies

NEW DELHI: With air traffic in the country growing at 40 per cent annually for the past few years, lop-sided and irrational tax structure on aviation turbine fuel (ATF) is playing havoc with the civil aviation sector, Civil Aviation Minister, Praful Patel, said here on Monday.

“The issue of ATF has to be addressed meaningfully. In the country’s overall economic development, civil aviation has an important role to play. For this sector to grow meaningfully in the long-term, Finance and Petroleum Ministers, public sector undertakings and State governments must understand that in the long-term it is negative for those States which charge higher sales tax rates of 34 per cent on ATF. They must understand that it is not good for their State,” he said.

Speaking during the “Aviation Safety Week”, being observed by the Civil Aviation Ministry, Mr. Patel said the need of the hour was to fix a base tax rate and rationalise Central levies on ATF.

The Minister has taken up the issue of ATF at a time when its prices have sky-rocketed to about Rs. 41,000 per kilo litre and airlines have imposed Rs. 300 per ticket as fuel surcharge on passengers.

About the recent incidents of delay involving flights of Air India, Mr. Patel said the national carrier’s obligations, duties and constraints must be understood by all.

“Though such incidents are not be excused, Air India faces certain issues that are beyond its control. This is an era of competition. There is no monopoly of public sector carriers anymore and competition will get more intense in the years to come. The government can only support to an extent, they have to perform or they will perish,” he said.

Maintaining that the government was doing its bit to tackle flight delays and dislocations due to onset of fog during winter in the national Capital, Mr. Patel said those airlines which have CAT III compliant pilots would be given preference in operations from Delhi airport. CAT III compliant aircraft and pilots can operate in low visibility conditions of up to 50 metres.

“Not all pilots in any airline in the world are CAT III compliant. There are delays world over and many European and American airports are shut for days in a row in the season of fog,” Mr. Patel said.