Cheaper ATF sees Hyderabad airport buzzing

More than a hundred flights are queuing up daily at Hyderabad's new airport to refuel, thanks to lower sales tax on jet fuel.
If you want to cut costs, fly to Hyderabad. That' is the new mantra in the aviation industry because aviation turbine fuel or ATF is cheaper in Hyderabad's new airport compared to other Indian airports.
The sales tax on ATF ranges from 20 to 35% across various states while in Andhra Pradesh, it's just 4% making it an attractive point of refueling.
“The decision taken by government of AP to reduce sales tax from 33 to 4% is a huge advantage. The airlines are saving 10% of their fuel costs,” said A Viswanath, VP-Commercial, GMR.
An airline can save at least Rs 3.3 to Rs 3.8 lakh for an A-320 and Rs 80,000-90,000 for an ATR plane.
07/05/08 Vishwanath Pilla & Harsha Subramaniam/ CNBC-TV18/Money Control.com

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Categories: Airports May 2008