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August 1, 2009

Patel telling the private air operators to talk rather than go on strike

     New Delhi: Union Minister of State for Civil Aviation Praful Patel has urged the private air operators to come forward for negotiations rather than threatening to suspend operations on August 18. Patel said, the government understood the problems of the aviation sector, but maintained that it would not tolerate inconvenience to the paying public. According to Civil Aviation Ministry sources the Federation of Indian Aviation has accepted the government's offer for a dialogue. On Friday the FIA after it's meeting in Mumbai, had threatened to suspend domestic operations on August 18. Private airlines are demanding a bailout package of Rs 10,000crores in the form of lower sales tax on aviation turbine fuel (ATF) and lower airport taxes from the government. The issue of ATF tax is a state issue and the ministry has been requesting State Governments to see reason, Patel said. The Indian private airlines threat to suspend operations is said to be the first in the century-old history of the global airline industry.
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