Speaking at the India Economic Summit of the WEF, he said the sector if given benefits in terms of taxation and cost, there is no reason why India will not emerge as the fastest growing aviation market in the world in the next decade.
The Centre had requested states to reduce the VAT rate on ATF by one per cent, to encourage flight services connecting important cities in the country.
A subsidised 14.2-kg LPG cylinder now costs Rs 487.18 in Delhi as against Rs 479.77 previously, according to Indian Oil Corporation, the nation's largest fuel retailer.
A lower VAT on ATF for small planes is crucial for the success of the government's regional connectivity scheme that aims to make flying affordable for people living in cities with airports that are unserved or under-served
ATF has been subject to an excise duty of 14 percent. On top of the excise duty, state governments impose a value added tax which varies from 4 percent to 30 percent.
Aviation turbine fuel (ATF) price has been cut by over 5 per cent, reversing a two-month rising trend, while rates of subsidised LPG were hiked by Rs 5.57 per cylinder.
Civil Aviation Minister Jayant Sinha said that certain restrictions will be imposed on foreign players and they may not get all the privileges that Indian airlines enjoy.
The tax cut in aviation turbine fuel (ATF) announced by Delhi government for flights in the Regional Connectivity Scheme will help bring down costs, according to SpiceJet Chairman and Managing Director Ajay Singh.
Speaking to CNBC-TV18, Krishnan Balakrishnan, Chief Financial Officer at GoAir, said that rising jet prices were affecting the margins of every airline.
ATF or jet fuel price was hiked by Rs 1,881 per kilolitre (kl), or 3.7 percent, to Rs 48,379.63 per kl in Delhi. The reduction comes after two rounds of hikes, the last one being on November 1 by a steep 7.3 percent.
A subsidised 14.2-kg cylinder will now cost Rs 430.64 in Delhi as against Rs 428.59 previously, according to state-owned oil firms.
"India is a huge market ... Obviously we are a very large player globally in the aviation business, so it makes sense for us to be here," said Sashi Mukundan, regional president and India country head for BP .
A subsidised 14.2-kg cylinder will now cost Rs 425.06 in Delhi as against Rs 423.09 previously, according to state- owned oil firms.
Earlier in August, ATF prices were reduced by 4.2 percent. It will impact all aviation companies positively as ATF forms 40 percent of operating costs. This follows five ATF price hikes till July. ATF price was hiked by 5.5 percent in July for the fifth month in a row.
Government today notified excise duty of 2 per cent for jet fuel purchased from airports that come under the regional connectivity scheme, which seeks to make flying more affordable.
The revised prices of aviation turbine fuel (ATF) in Delhi now stand at Rs 49,287/kl from Rs 46,729/kl. With this, the overall price increase totals about 23 percent since January 1, 2016.
The prices of ATF, petrol and diesel have been made market determined by the government since April, 2001, June 26, 2010 and October 19, 2014 respectively, Sitharaman said, replying on behalf of Petroleum Minister Dharmendra Pradhan, in Lok Sabha.
Poor regional connectivity a result of airlines' high fixed costs and low traffic, say trio of FICCI, Ministry of Civil Aviation and KPMG
The central and state governments subsidise a wide range of products â€” including rice, wheat, pulses, sugar, kerosene, LPG, naphtha, water, electricity, fertiliser, iron ore, railways, among others â€” in order to make these affordable.
It is requested that airlines should be exempted from application of MAT till all the accumulated book losses (including unabsorbed depreciation) are set off against future book profits, says Ajay Singh, CMD of SpiceJet.
Jet fuel constitutes over 40 percent of an airline's operating cost and the price cut will lighten the financial burden on cash-strapped carriers.
Oil marketing companies slashed aviation turbine fuel (ATF) prices by 10 percent, hence current prices are lowest since June 2010. Fourth consecutive monthly decline was after the sharp fall in crude oil prices.
The inclusion would have reduced the price of Aviation Turbine Fuel (ATF) -- which accounts for 45 percent of an airline's operational costs.
ATF cost, which constitutes 40 percent of the operating cost of an airline, is an important determinant of operating margin. States charge anywhere between 4 to 30 percent sales tax on ATF, making the fuel 30-35 percent more expensive than in most countries