New Delhi: Aviation ministry officials including Minister of State Jayant Sinha on Monday met Finance Minister Jaitley and other officials on concern over high fuel prices hitting finances of airlines. The ministers discussed tax-related issues for the sector, including bringing aviation turbine fuel under the goods and services tax to bring down input cost for carriers.
Aviation ministry and airline companies have been demanding to bring aviation turbine fuel under the goods and services tax. The sustained rise in crude oil prices have further strengthened this demand. “The ministry of civil aviation and petroleum ministry have asked finance ministry and states to consider bringing ATF under GST framework and we would very much like that to happen. So we discussed that matter as well,” Sinha told reporters after the meeting.
Various other taxation-related issues for the sector were also discussed, Sinha said without elaborating. Aviation Secretary RN Choubey and SpiceJet’s Chairman and Managing Director Ajay Singh were also present at the meeting.
Choubey and Singh said that SpiceJet was awaiting approval from the Department of Telecommunications to begin in-flight connectivity.The Telecom Commission, on May 1, had approved recommendations made by the Telecom Regulatory Authority of India to allow voice calls and internet services on flights and ships using Indian satellites and gateways.
Boeing 737 MAX 8 aircraft, which was delivered to SpiceJet on Oct 12, is equipped with satellite communication to enable internet services on board. The Gurugram-based airline had signed a $22-bln deal with the US-based Boeing in January 2017 for a firm order of 155 Boeing 737-8 MAX planes and purchase rights for another 50 aircraft.