Monday, July 27, 2015

Tax break to airlines with London takeoff

Bengal will waive tax on aviation turbine fuel (ATF) if any airline operates direct flights from Calcutta to Europe, chief minister Mamata Banerjee promised on Sunday before taking off for London to scout for investment.

Mamata had held a meeting with senior airport officials and bureaucrats in her entourage before boarding Air India's Calcutta-Delhi-London flight. "She said if any airline operates direct flights from Calcutta to Europe, the state government would have no hesitation in waiving the tax on ATF," a senior official quoted her as saying.

"The first airline to confirm its acceptance will pay zero tax on fuel. Other airlines too would get significant tax relief if they fly directly to Europe," the official said.

The chief minister asked airport director Anil Sharma to start approaching airlines with the offer of a tax break so that Calcutta gets back a direct connection to Europe, sources said.

Officials of several international airlines said flights between Calcutta and Europe would be viable in the long term only if there was a steady flow of business fliers who weren't "price-sensitive" and travelled frequently.
27/07/15 Sanjay Mandal/Telegraph
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