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GoM to go into aviation fuel prices
Vinay Kumar
NEW DELHI: The Union Cabinet on Thursday decided to set up a Group of Ministers to assess the impact of the high price of Aviation Turbine Fuel (ATF) on the aviation industry and suggest steps to reduce the burden on airlines.
At a meeting here, presided over by Prime Minister Manmohan Singh, the Cabinet sat through a presentation made by Civil Aviation Minister Praful Patel on the hardships faced by the aviation sector.
The decision to set up the GoM came within days of the chiefs of major private airlines as well as Air India apprising Mr. Patel of the financial crisis caused by the high ATF prices, steep airport charges and low volume of passengers at a time of global downturn. Mr. Patel said the GoM would focus on the “very high nature” of sales tax being imposed by the State governments on ATF.
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