Hyderabad, July 9^th: According to the experts saying the air prices will continue to rise in future as the government did not give any relief to the airline industry in the Budget. The introduction of affordable fares is possible only when the government comes out with a bailout package for the industry. The Union minister for finance, Mr. Pranab Mukherjee did not consider several demands such as exemption from luxury tax, abolition of service tax and reduction of taxes on Aviation Turbine Fuel which directly has a very strong impact on air fares.

Mr. Rajji Rai, president of Travel Agents Association of India felt that the Budget is a major disappointment for the air line industry as it has not given any exemption for Travel, tourism and hospitality. The airlines are reporting huge losses despite putting additional burden on passengers in the form of surcharge. Experts argued that the aviation industry will be viable financially only when the government comes out with uniform tax system for the sale of ATF across India.