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Tag: VAT On ATF

Govt Not in a Mood To Bless Domestic Airlines With Traditional Financial Package

[New Delhi]Indian Govt Not in a Mood To Bless Domestic Airlines With Traditional Financial Package
Govt of India Is Concerned Over Financial Health Of Domestic Airlines But Not In a Mood To Bless them with Traditional financial Packages.
The Government today expressed concern over the financial health of domestic airlines but ruled out plans of extending financial package to budget carriers.
However, Minister of State for Civil Aviation Dr Mahesh Sharma said that state governments have been requested to reduce Value Added Tax (VAT)on Aviation Turbine Fuel [ATF] as it constitutes a significant part of an airline’s total operational costs.
However, On other hand, National Carrier Air India has taken several steps to make its operation profitable which include
[1] withdrawing flights that does not meet fuel or variable costs,
[2]adjusting schedule in line with seasonal demand and
[3]offering discounts to corporate travellers among others,