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.
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