The Government on Tuesday ruled out a bail out package for the airline industry but said it was actively engaged with states to ensure lower operational costs in the form of reduced taxes.
"This is not a sector that is entitled to subsidies. The Government is not involved in giving any bailout package. Let us be very clear about that. Airlines are entitled to ask anybody to give them cheaper loans. The government is not coming in the way of that," Civil Aviation Minister Ashok Gajapathi Raju said at a news-conference marking 100 days of the Modi Government.
While firmly ruling out any financial package on easy terms for the loss making airlines, Mr. Raju said the Centre was in talks with states to lower the incidence of tax on air turbine fuel (ATF) which accounts for a substantial part of airlines’ working expenses. Asked how many states have agreed to reduce taxes on ATF, Mr. Raju said very few had responded positively but he was hopeful of more coming on board.
Touching on the much anticipated list of towns which the Government wants to put on the air map despite passenger volume likely to be low, Mr. Raju said work will begin on the first lot of no-frills airports at Tezu (Arunachal Pradesh), Kishangarh (Rajasthan), Jharsuguda (Odisha), Hubli and Belgaum (both Karnataka).
Taking exception to such airports being referred to as low-cost airports, Mr. Raju pointed out that that they will have all the basics such as safety and security but there will be no additional frills in order to bring down the capital cost and the recurring expenses on maintenance.
The no-frills airports are unlikely to have the bells and whistles associated with regular airports in metros that have a huge seating area, food mart, phone recharging kiosks and a shopping area.
Mr. Raju also launched a 'Know Your Rights' portal by the Directorate General of Civil Aviation (DGCA) which lists the rights of passengers in cases of inconveniences such as delays, denial of boarding, and lost or damaged baggage.
The DGCA has also made special provisions for disabled passengers such as blocking two window seats for them till 24 hours before flight departure.
The Minister also touched on the safety downgrade of the Indian airlines sector. A U.S. Federal Aviation Administration (FAA) team may visit India shortly to take stock of the steps taken by DGCA in an attempt to regain Category-I rating. The FAA had found 30 shortcomings most of which have been addressed.
