Import duty offsets aviation fuel slash

Though Aviation Turbine Fuel (ATF) sold to small aircraft has become cheap, do not expect any dip in air fares. For a majority of airlines, the Budget was a huge disappointment.
For air-passengers, the Budget could mean introduction of flights on long-distance non-metro routes. For charter-aircraft operators and flying-training schools, the Budget brought a nagging headache, with ambiguity over the levy of import duty.
Operators of aircraft weighing under 40,000 kg are smiling. Their turbine fuel will now be brought under the declared goods category, with a CST levy of only 3%, as against the earlier 26-30%.
"The annual savings on fuel would be about Rs 100 crore. We could look at launching flights on off-the-beaten track routes like Cochin-Ahmedabad," said M Thiagarajan, managing director of Paramount Airways. Air Sahara could save about Rs 25-30 crore.
01/03/07 Times of India

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Categories: General Aviation Mar 2007