Tiruchirapalli, June 30 (UNI) Air fares would go up if the Union Government failed to rationalise the pricing structure of the Aviation Turbine Fuel (AVT), Paramount Airways Managing Director M Thiagarajan said today.
Talking to reporters after launching the Tiruchirapalli-Chennai inaugural flight, he said if there was increase in air fare, then there would be reduction in people travelling in aircraft.
The Centre had been giving subsidies for petrol and diesel as there had been a steady increase in the price of crude oil globally.
''But, the ATF has been meted out a raw deal. Air travel has become an essential mode of travel and the Government's indifferent attitude towards it is incorrect''.
''If there is no relief forthcoming from the Government, there will be increase in fares and low cost airlines will bear the brunt of it'', he cautioned.
Mr Thiagarajan said he had also taken up the matter with Prime Minister Manmohan Singh two weeks ago.
Observing that India was an ATF-surplus country and 60 per cent of its production were being exported, he said there was a notional disparity on a product that was being manufactured in India. The prices of ATF in India was 80 per cent more than what was exported to other countries.
''The Government had to reduce this notional import duty and rationalise the pricing structure of ATF,'' he added.
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