Air Deccan not affected by Budget provision

Air Deccan on Wednesday said that it was not affected by the change made by the recent Budget to the effect that all small aircraft — not only ATRs — up to a maximum weight of 40,000 kg would be eligible for a concessional central sales tax duty of 4 per cent, (instead of 30 per cent otherwise).
Thirty of Air Deccan's fleet of 53 aircraft are ATRs. The only other airline that has a non-ATR with a maximum weight of 40,000 kg is Paramount Airways, which has five Embraer jets. Answering a question at a press conference here on Wednesday as to whether the change the Budget had brought about would not lower Air Deccan's competitive advantage, Mr Warwick Brady, Chief Operating Officer, Air Deccan, said that the airline would still remain competitive.
He said that ATRs were cheaper and easier to maintain and the cost per passenger km worked out cheaper than a jet.
08/03/07 Moneycontrol.com

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Categories: Air Deccan Mar 2007