The Finance Ministry will review the pricing for aviation fuel, which accounts for 30-40 per cent of an airline’s operational costs and accord it ‘declared goods’ status. The move will bring down sales tax to 4 per cent, which is currently 24 per cent in some states. The Ministry will also ask government servants to fly only AI on official trips.

It was also decided at the meeting that the Petroleum and Natural Gas Ministry will intervene with oil marketing companies to provide a six-month credit line to the carrier.

AI will leverage its properties and other real estate assets to generate additional revenues and bring in cash, said an official. “It will also undertake rent-reduction,” he added.