Date:15/06/2008 URL: http://www.thehindu.com/2008/06/15/stories/2008061555941500.htm

Business

Airlines evaluate options of cheaper ATF imports

MUMBAI: Faced with high air turbine fuel (ATF) prices fuelled by rising global crude prices and higher sales tax, air-carriers are mulling over jet fuel imports to cut down operation costs.

The airlines will decide whether “to import ATF rather than buy domestically if it brings down our costs... the actual user of imported ATF will not be subject to sales tax. This is certainly an option we are considering,” Kingfisher Airlines Chairman Vijay Mallya told reporters here on Saturday.

Newly elected as the Federation of Indian Airlines Chairman, Mr. Mallya has been mandated by airlines to represent them at various fora, to take up their cause and especially the issue of taxes.Making a case for sales tax reduction by State governments, he said, “State governments also earn huge revenue from airline companies and they should not have any hesitation in coming to our rescue by reducing sales tax.” Mr. Mallya said if they (State governments) did not pay heed to the demand, air-carriers might reduce flights across destinations. — PTI