The Hindu Business Line : ‘Panel on aviation industry to meet soon’

New Delhi, Oct 17 The inter-ministerial committee headed by the Cabinet Secretary, which was set up to examine ways to make the domestic aviation sector viable, is to meet soon, the Minister for Civil Aviation, Mr Praful Patel, said here on Friday.

Addressing a press conference, the Minister pointed out that the prices of aviation fuel were 70 per cent higher here than in several other countries. Fuel accounts for between 45-50 per cent of the operating costs of domestic airlines and is being blamed as one of the main causes for the losses being reported by the sector. The industry is expected to post a loss in excess of Rs 4,000 crore this year which could double the following year, industry experts feel.

The Government had no plans to come out with a financial package for the domestic aviation sector, the Minister said and pointed out that the need of the hour was to rationalise taxes including those which are being levied by State governments on aviation fuel. Mr Patel said he was happy that the 1,900 Jet Airways employees whose services were being terminated were now being taken back by the airline.

“I welcome the move and am happy that the people can have their jobs back. I had spoken to Mr Naresh Goyal (Chairman, Jet Airways) last night on this issue. I am glad that he has reversed the decision,” Mr Patel added.

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