Gajapati Raju asks states to reduce tax on ATF to bring down operation cost of airlines

New Delhi Dec 30

Civil Aviation Minister Ashok Gajapati Raju has asked the states to
reduce the taxes levied by them on air turbine fuel, ATF to bring down
the operational cost of airlines.

Talking to reporters on the sidelines of a function in New Delhi, Mr
Raju said that ATF is high taxed commodity and is a major factor in
determining the air fare. He also said some states have already
reduced it and if others follow, it will make domestic travel
affordable.

On the issue of financial crisis in Spicejet airlines, the Minister
said it is their problem and it is for them to sort it out. He,
however, said, the government is willing to help the airlines.

Earlier Airport Authority of India had given two week extension to the
airliner to keep its house in order. The extension period is expiring
tomorrow.The Minister also said that the government is seeking
suggestions and ideas from the states to finalise draft aviation
policy.