Wednesday, August 15, 2018

VAT concession on aviation fuel may boost number of base flights from city

Coimbatore: The state government on Tuesday issued an order offering a concession on VAT levied on aviation fuel for airlines which operate base flights from airports which saw traffic of less than 50 lakh passengers a year. The concession, which will reduce VAT to only 1%, instead of the usual 29%, will be for flights which land after 11pm and depart before 7am and park for at least three hours in these airports.
Airport authorities and frequent flyers are expecting this will prompt more airlines to choose Coimbatore as their base, thus enabling them to operate more early morning flights to metro cities. Despite the city having nine parking bays, only one of them is occupied by Indigo Airlines, which operates an early morning flight to Chennai and a late-night return flight from Chennai.
To promote more base flights from smaller airports in Tamil Nadu, chief minister Edappadi K Palaniswami had announced about the concession in mid-May this year. However, the announcement not being implemented, many airlines delayed opting for base flights from the city.
15/08/18 Times of India
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