4 airlines shut shop over 3 years: Govt
New Delhi: Four domestic airlines, including Jet Airways and JetLite, have shut their operations over the last three years for want of funds and unavailability of aircraft, Parliament was informed on Wednesday.
Among the four carriers, the LEPL Projects Ltd-run Air Costa and Air Carnival suspended their services in 2017 due to non-availability of aircraft. As per a written reply by Civil Aviation Minister Hardeep Singh Puri in the Rajya Sabha, Jet Airways and its subsidiary JetLite suspended their services in April this year on account of a funds crunch. The government has said that it is conscious of the financial difficulties being faced by the airlines and is responding to the industry situation.
The Minister said the government was coordinating with all the stakeholders to resolve their issues. As a result, the central excise duty on aviation turbine fuel (ATF) has been reduced from 14 per cent to 11 per cent effective October 11, 2018. The Minister said that 100 per cent FDI has been allowed under the automatic route.