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Airport infrastructure development continues to be a matter of concern. Upgradation of many airports, including construction of new terminals, upgradation in 18 non-metro airports, for improving air navigation services the Airport Authority of India (AAI) installing the new ATS automation system. In order to address issues concerning viability of the civil aviation sector, particularly the airline industry, a Working Group was constituted on 12, December 2011 under the chairmanship of the Secretary civil aviation. Their major recommendations were:
(i) state governments should rationalise the value added tax (VAT) on aviation turbine fuel (ATF),
(ii) foreign airlines be permitted to invest in domestic airlines undertakings,
(iii) direct import of ATF by airlines for their own consumption be allowed,
(iv) airlines should be asked to prepare their turnaround plans,
(v) fare structure should be reviewed by airlines to cover the cost of their operations.
(vi) an economic regulatory framework suggested with regard to excessive/predatory pricing by 31, May 2012.