With airlines having dropped fares and added flights to several minor airports across the country, small-town India is flying high. Carriers have been able to trim fares and start more flights to destinations like Bagdogra and Bhubaneswar thanks to the enormous savings that they’re making on the price of jet fuel.
States such as West Bengal, Jharkhand, Chhattisgarh and Madhya Pradesh have slashed the value-added tax on aviation turbine fuel (ATF), the consequence of which has been a big jump in flights, leading to a sharp increase in passenger traffic.
So enthused are some airlines by the cost savings that they have started international connections from these airports — SpiceJet, for example, launched a Kolkata-Bagdogra-Kathmandu route last week.
Had SpiceJet flown directly from Kolkata to Kathmandu, it would not have got the benefit of lower-priced ATF. SpiceJet chief operating officer Sanjiv Kapoor says the airline will continue to explore ways to operate more flights to stations with low ATF taxes.
21/08/14 Indian Express
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States such as West Bengal, Jharkhand, Chhattisgarh and Madhya Pradesh have slashed the value-added tax on aviation turbine fuel (ATF), the consequence of which has been a big jump in flights, leading to a sharp increase in passenger traffic.
So enthused are some airlines by the cost savings that they have started international connections from these airports — SpiceJet, for example, launched a Kolkata-Bagdogra-Kathmandu route last week.
Had SpiceJet flown directly from Kolkata to Kathmandu, it would not have got the benefit of lower-priced ATF. SpiceJet chief operating officer Sanjiv Kapoor says the airline will continue to explore ways to operate more flights to stations with low ATF taxes.
21/08/14 Indian Express
