Wednesday, July 05, 2017

AirAsia India will not pass on GST burden to consumers

Mumbai: AirAsia India is not hiking fares, despite an increase in leasing costs under the new goods and service tax (GST) regime, rolled out on July 1.

Airlines have raised the issue of dual taxation on aircraft leases, that is, the levy on import of aircraft and GST on lease rentals. AirAsia India says its leasing cost will go up by around Rs 10 crore for each aircraft. “There is an anomaly. We have made a presentation to the government on this. We are not passing the charges to customers and hope the issue will be sorted out,” said the airline's managing director, Amar Abrol.

AirAsia India commenced operations in June 2014 and at present, has a market share of around 3 per cent. The airline inducted its 11th aircraft on Tuesday and announced the launch of Bhubaneshwar as its sixteenth destination from August onwards.
04/07/17 Aneesh Phadnis/Business Standard