Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: cpt :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: TDS :: Central Excise rule to resale the machines to a new company :: empanelment :: articles on VAT and GST in India :: VAT RATES :: form 3cd :: due date for vat payment
« Sales Tax »
 Insurance Agency Mergers and Acquisitions in Q1 "Explode," OPTIS Partners' Report Reveals
 Sales tax sleuths raid spare parts shops in Meerut's infamous Sotiganj market
 Income Tax: How offshore income could be taxed twice
 India finalises bills to launch new sales tax in July
 NMC to implement new tax system from Apr 1a
 13 per cent sales tax boost post demonetisationa
 Arun Jaitley May Lower Corporate And Income Tax Rates But Hike The Service Tax Rate
 Tax on high seas sales becomes dispute area
  State extends GST enrolment deadline
 State extends GST enrolment deadline
 To protect its status, state forms panel to draft legislation on GST

Jet, Spice, Kingfisher to cut flights, routes
June, 04th 2008

Jet Airways [Get Quote], SpiceJet, Kingfisher and other airlines have told the government that they would curtail services frequency and air routes to cut losses after oil companies raised the prices of aviation fuel.

"I have been informally told by airlines that they would like to prune their services. Frequency may be decreased," said civil aviation minister Praful Patel, while expressing grave concern about the rising prices of jet fuel. "Airlines may choose to fly less rather than fly more and lose more," he added.

The rationalisation of flights has already started on the short haul routes and will soon extend to the long haul ones. For instance, Spice Jet has cancelled around 15-16 short haul flights in the last two months and will look at pulling out long haul flights soon.

"Our rationalisation will spread across the entire network and we will stop all operations which are not giving us proper yields. This might include metro routes as well," said a Spice Jet executive.

Last month, the Mumbai-based low cost carrier Go Air cut operations to Chennai.

Expressing concerns about the rising ATF prices, Patel spoke about meeting the Prime Minister Manmohan Singh and Finance Minister P Chidambaram in a week to sensitise them about the issue.

"ATF accounts for more than 45 per cent of the airline's costs and this component will increase even more. The prices of ATF have been increasing much more than other petroleum products. In a week, I will make a presentation to the Prime Minister and Finance Minister. We will have to look at various steps for relief," said Patel.

On Saturday night, public sector oil companies announced more than an 18 per cent average increase in the prices of aviation turbine fuel (ATF).

This has resulted in an increase of 8-10 per cent in all ticket fares, with airlines such as Jet Airways and Kingfisher announcing an increase of Rs 300 for short-haul sectors (under 750 kilometers) and Rs 550 for long-haul sectors (over 750 kms).

The respective surcharges for short and long haul sectors now stand at Rs 2250 and Rs 2900 respectively. The ATF prices have gone up at least 5-6 times since 2004.

Asked whether the state governments would be asked to cut the sales tax on ATF to 12.5 per cent, Patel said minimal deduction would be ineffective and the sales tax would have to be cut down to 4 per cen.

Civil aviation sources said a relaxation in norms for flying abroad would be sought even more strongly, so that airlines opting out of domestic routes could expand their operations internationally.

"This (relaxation) is being strongly looked at and will be taken up strongly in the next GoM," said a source in the civil aviation ministry. Apart from national carrier Air India, Jet and Kingfisher-Deccan have received the nod to fly abroad, while Spice Jet is still waiting in the wings.

"The ministry would do well to permit airlines to fly international. This would enable them to try their luck on overseas routes, besides attracting lagging investor interest," said an industry expert.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Team

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions