Jet Airways, Kingfisher Airlines and Spice Jet rushed up after the government on Friday, resolved to form a Group of Ministers to take care of the matters addressed by the slump-hit airlines.
The GoM will consider the sales tax and soaring base rates of fuel. The government’s move has emerged a week after airline industry leaders endangered to hit a strike on 18th August. The strike was, nevertheless, canceled two days after it was declared in outlook of probable hassle to thousands of travelers.
Reportedly, aviation fuel was priced at Rs.38, 000 on each kilolitre in the country, as opposed to Rs.24, 500 in Hong Kong, Rs.25, 000 in Bangkok, Rs.24, 000 in Singapore, Rs.25, 000 in New York, Rs.26, 000 in Tokyo, Rs.26, 500 in Paris and Rs.26, 000 in Dubai. The main cause for this is the soaring sales tax.