Ministry of Civil Aviation: Survival of Budget Carriers

17-Mar-2015 The Government is concerned over financial health of all airlines including budget airlines. No financial package is planned for budget airlines by the Government. However, since fuel constitutes about 40-50% of cost of operation of an airline, Ministry of Finance was requested to include Aviation Turbine Fuel (ATF) under declared goods. State Governments have also been requested to reduce VAT on ATF in their respective States.