India's Minister of Civil Aviation Ajit Singh stated that based on returns filed by airlines with Directorate General of Civil Aviation (DGCA), all scheduled airlines operating in the country except IndiGo are incurring losses. The total operational losses for all the airlines for the period 2008-09, 2009-10 and 2010-11 was approximately INR190 billion (USD3.56 billion) with a INR100 billion (US1.87 billion) loss anticipated in 2011-2012. The Minister further informed there is no proposal to provide incentives to private airlines. However, a Ministerial Working Group has been constituted under the Chairmanship of Secretary Ministry of Civil Aviation to identify the factors causing stress in civil aviation and suggest solutions to the same. The recommendations made by the Working Group include rationalisation of Value Added Tax (VAT) on Aviation Turbine Fuel (ATF), permission to foreign airlines to invest in the domestic airlines, allow airlines to import ATF directly for their own consumption, revision of fare structure by airlines so that costs of operations are covered.
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