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Karnataka Govt ATF duty cut can revive Belgaum on aviation map

Jul 1, 2009 by Editor 1 Comment

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Karnataka government is in a bid to give a fillip to flight operations between Tier-II cities in the state is considering reducing tax on the Jet Fuel to 24 per cent from the present rate of 28 per cent.

 Reduction is aimed at improving the intra-city air connection which has been badly affected following private airlines withdrawing service due to shortage of passengers. 

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The government has held talks with airlines on the matter and is hopeful that flight operation’s from Tier-II airports like Belgaum and Hubli will be back to normal. 

What will really happen and will air traffic resume is the biggest question. The 4% tax cut will not have much impact on the fare and hence there will be not much room for airlines to cut fare as well. Let’s hope for the best.

 Source: Express Buzz

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  1. SANJIV says

    Jul 2, 2009 at 1:11 PM

    What ever the case may be either poor development ,lagging in Industrial growth compared to other cities and any retrdation ,the thing boils down to a single reason ie :- border dispute. Due to this Belgaum has not progressed as much it had to progress considering all the favourable factors for development .Well only God knows the solution to this problem .
    – S.M. NAIK-
    Jhansi

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