The Hindu Business Line : No decision yet on peak, non-peak hour airport rates: Praful

New Delhi March 13 The Minister of Civil Aviation, Mr Praful Patel, on Tuesday met the Prime Minister, Dr Manmohan Singh, to impress on the need to reconsider some of the proposals put forward in the Budget.

"The Ministry of Civil Aviation supports the aviation industry on the need to continue with the exemptions that are currently available to airline on payment of with holding tax on lease rental for aircraft and aircraft engines. If the exemptions are withdrawn, then the airlines could pass on the additional expenses to the passenger. This was just one of the issues that was raised during the meeting. Besides, I have also written to the Finance Minister on this subject," the Minister said after a meeting with the Federation of Indian Airlines, here on Tuesday.

The exemption is now valid for lease agreements that have been signed prior to end of this month.

Differential rates

On the issue of Government planning to have differential rates for airlines operating into Delhi, Mumbai and Bangalore during peak and non-peak hours, the Minister said that no decision had yet been taken on the issue.

"We do feel that there is scope for airlines to operate during non-peak hours also. At today's meeting, the issue of decongestion at these airports was discussed. There was no decision on having any incentives or disincentives for peak and non-peak hours. There are various committees that have made several recommendations. The issue is being examined," Mr Patel said.

The Minister refused to speculate on whether the decision to implement differential peak and non-peak hour rates could be taken before the month-end.

The Chairman and Managing Director, Kingfisher Airlines, Mr Vijay Mallya, said the industry would meet with the empowered group of state finance ministers to seek relief on the high incidence of sales tax that various States levy on aviation turbine fuel (ATF).

The sales tax on ATF varies from 4 per cent to 38 per cent and accounts for between 35 per cent and 40 per cent of the operating cost of most domestic airlines.