Govt exempts import of aircraft and its parts, taken on lease, from GST
The Dollar Business Bureau The Government has exempted import of aircrafts, its engines and parts, taken on lease, from the Goods and Services Tax (GST), a move that is seen as a relief to the domestic aviation industry. Under the new GST regime, implemented on July, the aircrafts imported on the basis of lease has attracted an integrated GST (iGST) of 5%. The airline industry had been urging the Government for a relief as it has to face a double levy of 5% at the time of importing and another tax of 5% at the time of paying for the lease rent. The Ministry of Civil Aviation has raised the industry’s concerns before the Department of Revenue on various occasions. In a notification released on ...
AirAsia India plans to expand to 20 aircraft to fly abroad
The Dollar Business Bureau Tata Sons and Malaysia’s AirAsia - owned AirAsia India has announced it would soon expand its fleet to 20 aircraft to meet the government’s conditions of flying abroad. “We are at seven aircraft and want to get to 20 at the earliest. We are not going to stop at 20. The board has approved multiple millions of dollars for this growth,” said Amar Abrol, chief executive officer at AirAsia India. Air Asia plans to induct its seventh aircraft by September this year. It expects to serve more routes, connecting Bengaluru to Goa, Hyderabad and Guwahati. The company has been showing gross profit since April, primarily due to higher passenger loads on its key routes, Abrol said. In June this year, the government liberalised ...
Norms for overseas flight operation to be modified soon: Minister
Deepak Kumar | The Dollar Business The government is considering key changes with respect to the existing norms for overseas flight operators and is likely to take measures to modify the provisions. The existing norm, popularly known as 5/20 rule, allows an airline to operate on overseas routes only with a condition that it must have five years of expertise in the domestic segment operating with a fleet of 20 aircraft. “The prime minister and the aviation ministry held a wide discussion and consultation for almost an hour on 5/20, and methodology has been found out to address this. Currently, 5/20 is being reviewed and will be readdressed with certain changes,” Mahesh Sharma, Minister of State for Civil Aviation, Culture and Tourism ...
