In a crisis-struck situation when the airline sector is lobbying hard to get the aviation turbine fuel (ATF) under the declared goods category, pilot training institutes are also crying hoarse on the same. Of the 27 pilot training institutes in the country, 17 are recognised by the Directorate General of Civil Aviation (DGCA) and want a uniform tax structure on import of 100 LL (derivative of petrol required for trainer aircraft). Meanwhile, in a related development, the government has not announced any sops for the aviation sector in the third stimulus package announced on Tuesday.
Says YN Sharma, chief operating officer at Chimes Aviation Academy, ?We train 120 students each year and the course fee is anything between Rs 20-25 lakh. If the sales tax on 100 LL is uniform across the country at 4%, the course fee will come down by 4-5 lakh for each student.? He further adds, in current scenario, when the greenback has appreciated nearly 30% over the past six months, overseas courses have become dearer for Indian students. ?If the government considers 100 LL also in the declared goods category, we can pass on the benefits to students,? says Sharma.
He further added that it is ironical that trainee aircraft fall under the ?zero import duty category?, which indicates that the authorities anticipate growth in this segment, but the efforts fall mid-way, since there is no respite on sales taxes for the fuel.
Another official from one of the Secunderabad-based pilot training academies added that the issue of rationalising tax structure for the 100 LL should be treated at par with ATF by the government. ?Pilot training institutes are an allied service sector to the aviation industry. There have been serious investments in the field of pilot training programmes and if the issue is not taken up, airlines will continue to hire expat pilots,? said the official.
Private carriers like Kingfisher Airlines and Jet Airways also have plans to start pilot training institutes in the country to bring down their pilot training costs, which are undertaken abroad and borne by the respective airline. Kingfisher has earlier announced a Rs 200-crore investment to set up the pilot school in the outskirts of Mumbai.