Tier II airports to get ATF tax cut

Bangalore: Even as state-run oil firms hiked the Aviation Turbine Fuel (ATF) by more than 6 per cent on Monday, the Karnataka government in a bid to give a fillip to flight operations between Tier-II cities in the state is considering to reduce tax on the Jet Fuel to 24 per cent from the present rate of 28 per cent.
Government sources told Express that the reduction is aimed at improving the intra-city air connection which has been badly affected following private airlines withdrawing service due to shortage of passengers.
“The government will issue an order in a couple of days on the reduction of ATF tax which will be applicable to flights operating from airports other than Bangalore and Mangalore,” said sources. The government has held talks with airlines on the matter and is hopeful that flight operation’s from Tier-II airports like Belgaum and Hubli will be back to normal. Earlier this month, flight operations has ceased from the Sambra Airport, Belguam after Kingfisher Airlines which was operating flights between Belgaum and Bangalore four days a week had stopped service due to mounting losses.
01/07/09 Hemanth CS/ExpressBuzz

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Categories: Airports Jul 2009