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Jun 20, 2012, 09.10 AM IST
Civil aviation minister Ajit Singh has charted out a revival package for the bleeding airline sector. While the industry has given his recommendations thumbs up, the oil and finance ministries are yet to give the go ahead, reports CNBC-TV18.
Aviation stocks were flying high today bolstered by comments from the civil aviation Ajit Singh on the revival plan for the sector.
Singh has once again recommended that Aviation Turbine Fuel be given declared goods status so it can enjoy a lower rate of VAT.
He has also pushed for a fixed duty in place of an Ad Valorem Tax on ATF. In addition, to these demands Singh has also sought relief for the sector on service tax.
In a letter to the finance minister he has asked for the Ad-Valorem service tax on air tickets to be done away with.
Ajit Singh, aviation minister, says that experts have recommended reforms.
While the Aviation minister sought relief for airlines, there was no cheer for striking Air India pilots. The derecognised IPG, got a rude shock when the minister said the government would look at hiring domestic and expat pilots and would not entertain the demands of the IPG.
The pilots, who have been on strike for a month now, took to the streets in the Capital demanding their grievances be heard.
Anil Rao, jt secretary, Indian Pilots Guild, says that "we will wait and see if this peace march brings out any results for us…."
The peace march is unlikely to result in a breakthrough with the government refusing to budge on the demands of a conditional settlement. While the future of the Majaraha continues to look bleak, any positive movement on Singh's revival package could turn things around for the beleaguered aviation sector.
Also watch the accompanying video.
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