Airline bosses meet Ravi over service tax hike

Top brass of India’s airlines on Friday expressed concern over the Budget proposal to hike service tax on air travel, saying it will lower their yields and adversely affect the already-troubled aviation industry.

Opposing the imposition of 10% service tax in business class on domestic flights as also in business and first classes on international flights, the Federation of Indian Airlines (FIA) maintained that this would cut into the “already thin margin of the airline business”.The FIA raised the issue at a meeting with civil aviation minister Vayalar Ravi to apprise him of the problems of the sector. The growing fuel prices and high airport charges were other areas of concern raised by the umbrella body of airlines in India.

The delegation included FIA chairman and Kingfisher chief Vijay Mallya, Jet Airways Chairman Naresh Goyal, IndiGo president Aditya Ghosh and Air India CMD Arvind Jadhav. FIA secretary general .

By
Neha Jain

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