Air India bailout spells more trouble for the aviation industry

Private airlines, led by the financially ailing Kingfisher Airlines, have reportedly sought the government's permission for direct import of aviation turbine fuel to run their planes on domestic routes. Their argument in support of their plea is that inordinately high taxes levied by various state governments have made aviation turbine fuel 50 per cent more expensive in India than abroad. Since fuel typically accounts for up to 40 per cent of an airline's costs, the private airlines have said that cheaper fuel imports will help them pare their operational costs.

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