Jet chief meets FM, seeks rationalization of taxes on ATF

Jet chief meets FM, seeks rationalization of taxes on ATF
PTI
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First Published: Mon, Oct 20 2008. 03 44 PM IST
Updated: Mon, Oct 20 2008. 03 44 PM IST
New Delhi: Jet Airways Chairman Naresh Goyal met Finance Minister P Chidambaram on 20 October to seek tax concessions on aviation turbine fuel as part of measures to overcome the crisis that has hit the Indian civil aviation sector.
According to sources, Goyal met Chidambaram at North Block this morning and drew attention of the finance minister to the problems that airlines in the country were facing.
Goyal is understood to have asked Chidambaram to consider the demand of airlines to rationalise taxation and levies on ATF, which has become one of the biggest issues of carriers in India.
Jet Airways alone had a total outstanding fuel bill of Rs859 crore, of which it had defaulted on payment of bills which were due on 25 September and 5 October.
Similarly, Kingfisher owed Rs110 crore to IOC of which Rs60 crore remained unpaid after expiry of the credit period.
National Aviation Company Ltd, the holding company of Air India, has an outstanding Rs606 crore as on 8 October and has a monthly fuel bill of Rs337 crore.
Goyal’s meeting with Chidambaram also comes days after the former had decided to reinstate 1,900 sacked employees.
Jet and Kingfisher had recently entered into an alliance seeking synergies in operations as they try to cut costs together.
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First Published: Mon, Oct 20 2008. 03 44 PM IST