New Delhi: Prime Minister Narendra Modi has emphasised on the financial revival of national carrier Air India and wants the entire aviation sector to benefit the common man instead of being perceived as a medium of travel for the elite, sources said.
The Centre is set to focus on the financial turnaround of Air India and ways and means to improve the functioning of the airline before any proposal for privatisation is formulated.
Incidentally, a key meeting of global airline group Star Alliance is scheduled very soon in London that will decide on whether Air India be admitted to the group.
In view of the financial stress affecting the sector, it also remains to be seen if the BJP government in the forthcoming Union Budget puts aviation turbine fuel (ATF) in the declared goods category to ensure a low uniform sales tax rate on ATF. Such a move will be a huge relief for airlines since ATF accounts for about 45 percent of the operating cost.
Sources said the PM was keen on initiatives in the aviation sector that benefit the common man especially since the aviation sector has become a necessity and not a luxury. Sources also said that the PM was keen that all efforts be made to restore the ranking of India after its downgrade by the US Federal Aviation Agency a few months ago.
The PM is also understood to have expressed interest in more steps to promote flexible use of airspace between the civil aviation authorities and the military.
