Cabinet forms committee to review impact of high ATF prices

NEW DELHI: To review the high ATF prices which are having a negative impact on the civil aviation sector, a committee have been formed under the chairmanship of the cabinet secretary.

Civil Aviation Minister Praful Patel while briefing a consultative committee of MPs attached to his ministry here today, said the issue was raised by him with the Prime Minister on a number of occasions, leading to the constitution of the committee.

The consultative committee would examine and assess the financial difficulties faced by domestic airline operators owing to high ATF prices and suggest measures for sustained growth of the aviation industry.

The minister observed during the consultative committee meet that base prices of ATF in India were primarily high to subsidise other petroleum products. High taxes on ATF levied by state governments have compounded the issue, resulting in high ATF prices across the country.

The cabinet committee is scheduled to meet for the first time on August 14, a release stated here.

Other issues discussed during the consultative committee meet of the civil aviation ministry included appointment of an ombudsman to address problems of passengers, development of airport infrastructure, functioning of regulatory authorities under the ministry, air connectivity to different places across the country, especially the North-east, issues related to merger of Air India and Indian Airlines and naming of airports.