Chief Minister Oommen Chandy has taken exception to the policy adopted by airline companies to jack up air fares whenever there is a rush of passengers during the festival season in Kerala.
“There is concern over the policy of raising airfares now and then. The exorbitant rise in fuel price is also causing issues,” Chandy said after rededicating the upgraded radar facility of the T’Puram international airport on Tuesday.
“The government is ready to exempt tax on Aviation Turbine Fuel (ATF) for airlines coming forward to operate within the three airports of the state. But, it should be linked to the airfares,” Oommen Chandy said. The Chief Minister said that large number of memorandums are being received by the state on the high airfares during the Onam season.
“Hiking the airfares during festival seasons is unjustifiable. I hope that the Civil Aviation Ministry will step in and address the issue at the earliest,” Chandy said.
Speaking earlier, Minister of State for Civil Aviation K C Venugopal urged the State Government to reduce the Value Added Tax (VAT) on ATF for airlines operating in the state.
He urged the Chief Minister to intervene to reduce the VAT on Aviation Turbine Fuel to 4 per cent as done by nine other states, including West Bengal. “VAT on ATF is on the higher side here. Slashing the tax would attract more airlines,” the Minister felt.