GoM will now also look into Jet pilots workman status

Finance minister Pranab Mukherjee has asked civil aviation minister Praful Patel to expand the terms of reference of the...

Finance minister Pranab Mukherjee has asked civil aviation minister Praful Patel to expand the terms of reference of the newly formed group of ministers GoM that was constituted to look into the issue of aviation turbine fuel. Taking into consideration the recent strike called by pilots of Jet Airways,Mukherjee is keen that the GoMs terms of reference be expanded to include the workman status of pilots. The GoM is likely to meet soon after the finance minister returns from his official engagements abroad.

The expanded terms of reference will aim to address the broader issues afflicting the aviation sector,a highly-placed source told The Indian Express. The finance minister is keen that several other issues be included in the agenda item for the GoMs meeting. One of the key issues likely to be included is the workman status of pilots,which has surfaced again due to the recent strike by Jet pilots, the source said.

Prime Minister Manmohan Singh had also expressed his concern on the Jet pilots strike and,at a recent Cabinet meeting,enquired about the issue from Patel. Prior to that,the committee of secretaries had in one of its meetings discussed informally the issue of highly-paid pilots being classified as workmen under the current provisions of the Industrial Disputes Act.

Earlier,Singh had instructed the formation of a GoM,to be chaired by the finance minister,to examine the issue of high aviation fuel prices that has deepened the crisis in the nations aviation sector. The GoM was to look into differential sales tax being charged by various states and the base price of the fuel,which is also much higher than most foreign countries.

The airline industry has been seeking a declared goods status for aviation fuel,which would bring down the sales tax from its highest levels of 30 per cent to 4 per cent. In an earlier presentation to the Union Cabinet,Patel had pointed out that aviation fuel comprises about 40 per cent of airlines operating costs. Indian private carriers incurred losses to the tune of Rs 10,000 crore in 2008-09. Their accumulated losses stand at Rs 57,000 crore.