Airlines, tour operators cheer tax exemption on ATF

Airlines and travel and tour operators in the state have welcomed the state finance minister Vajubhai Vala's budget proposal to exempt from sales tax aviation turbine fuel (ATF) and lubricants purchased for use in international flights from Gujarat.

Various international airlines such as Singapore Airlines, Air Lanka and Thai Airways have confirmed commencing their international flights from Ahmedabad.

Various other airlines such as Malaysia Airlines and Japan Airlines are planning to start international flights from Ahmedabad. Air India had recently introduced its direct international flight to London, and is planning to launch its direct flight to New York on July 11 and Dubai on July 13 this year.

"With the sincere efforts of the government of Gujarat, a direct flight from Ahmedabad to London has already been started and we are trying our best to start direct flights to destinations in the US, Canada, Australia and Europe," Vala said.

"For encouraging foreign airlines to introduce direct international flights from Gujarat, the state government has decided to give sales tax exemption on aviation turbine fuel and lubricants meant for use in international direct flights from Gujarat. Consequently, direct international flights to Ahmedabad will increase. Notification on tax exemption will be issued soon," Vala said.

"The state government's decision to levy zero tax on aviation turbine fuel and lubricants will come as a boon for the civil aviation industry in the state. A few international airlines will commence their international operations from Ahmedabad shortly, while various others are planning flights from here soon," said M S Jaladhari, airport director, Airports Authority of India, Gujarat.

Singapore Airlines has already announced the commencement of its direct service from Ahmedabad from July 28 this year. Thai Airways and Air Lanka are planning to start their flights from October this year, while Air Malaysia and Japan Airlines officials were in city recently to conduct a feasibility study.

Air Malaysia is waiting for the facelift of the international terminal at the airport to commence it operations from Ahmedabad while Japan Airlines is planning to use Ahmedabad airport as a transit point because of high congestion in the Delhi and Mumbai airports.

Slovak Airlines is also planning to start is direct operations from Ahmedabad. The airlines has already conducted a feasiblity study and will be coming to the city soon for the second round of talks with the airport officials.

"The move by the state government is a positive one and will definitely encourage international airlines to commence their operations from Ahmedabad," said a senior official of Indian Airlines.