Tag Archives: Taxes

by Vinay BhaskaraThis is part 1 of our 2012 review of Indian aviation. Part 2 will come next week with a carrier by carrier review of  2012 in Indian aviation. When the story of Indian commercial aviation in 2012 is told, the overarching narrative across almost the entire industry will be one of cautious optimism (though Kingfisher Airlines obviously belies this …

The following was posted as a guest post over at The Wandering Aramean, a great travel blog written by Seth Miller which also doubles as a travel tool site. Be sure to check his site out, and stay tuned, as we will have some guest content from him this week. When India’s Jet Airways, Kingfisher Airlines, and SpiceJet all recently …

When Kingfisher Airlines, once India’s second largest domestic airline, reported a Rs. 2,328 Crore (1 Crore = 10 Million) net post-tax loss for fiscal year 2012, it was simply an affirmation of the dire straits that a once proud airline has fallen into. Of the Rs. 2,328 Crore net loss, a whopping Rs. 1151.5 Crores were lost in the fourth …

The following speech was given by the CEO of the International Air Transport Association (IATA), Tony Tyler, at the India Aviation 2012 Air Show in Hyderabad. Our comments are included in the quote and are italicized and colored red. Good morning and thank you for the invitation to address the opening session of this important event. Congratulations to the Ministry …

The Indian budget for 2011-12 has raised the cost of air travel by imposition or raising of service tax. Earlier this morning, the Indian Finance Minister, Mr. Mukherjee, announced that the service tax on air travel by economy class would be raised by Rs. 50 for domestic trips and by Rs. 250 on international. Domestic business and first class passengers …

The Government of India has imposed a service tax of 10.3 per cent on the gross value of tickets for all classes on domestic flights and economy class on international flights will be levied on tickets sold, issued or re-issued, from today. Service tax will be calculated on the gross value of the ticket for the calculation of the service …

Kingfisher Airlines Chairman, Dr. Vijay Mallya, in an interview with Ashwini Phadnis of the Hindu Business Line claims it is “Taxes, not over-capacity, that is killing the Indian civil aviation sector”. The business logic to Dr. Mallya’s statement is to reduce fares by reducing the ridiculous taxation structure on Aviation Turbine Fuel (ATF), which ensures ATF in India is almost …

WINE PRICES IN BANGALORE HEADED INTO THE STRATOSPHERE ! You might be surprised at a wine article in my aviation blog, but wine is a subject close to my heart. The convoluted alcoholic beverages policy in India, makes each state, akin to another country, each with their own cumbersome taxes and regulations. The recent collapse of the Doha round of …