Civil
Aviation Minister Ajit Singh today ruled out any move to regulate air fares
saying the government only wants the system to be made transparent.
"No,
we are not going to regulate air fares," he told reporters after meeting
Oil Minister M Veerappa Moily here.
"What
we are trying to do is make the system for deciding the fares transparent.
Public should know what is the bucket system and the range they have given
should be reasonable".
On
rising air fares, Singh said the overall costs have gone up
"tremendously."
Oil
prices and airport charges, particularly, of the new ones are the factors
responsible for the rise in air fares.
"All
those things have to be taken into account (while deciding on fares)," he
said.
On
Kingfisher airlines, he said, "DGCA has made it very clear that in order
to allow them to fly again, they have to satisfy with their operational and
financial plan".
"Yes,
there will be a lot of collateral damage as you are saying if Kingfisher
Airlines doesn't fly," he said when asked whether the airline not flying
would mean collateral damage to lenders and suppliers.
"But
DGCA's concern is that there should be no safety problem. They should be able
to adhere to the schedule given," he said adding the airlines has to pay
its employees, oil
companies
and airport operators their dues.
On
his meeting with Moily, the minister said he discussed according declared goods
status to aviation turbine fuel (ATF), a move that would lead to a uniform
central sales tax of 3-4 per cent as against present practise of local sales
tax or VAT ranging up to 24 per cent.
"He
(Moily) agreed to this," he said. Moily said his ministry was in agreement
on giving declared goods status but the issue has to be decided by the Finance
Ministry.
"We
will jointly make a representation to the Finance Minister," he said.
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