Sunday, July 26, 2015

Mamata Banerjee to waive tax on ATF for airlines that operate direct flights to Europe


On the eve of her departure for London to woo investors, chief minister Mamata Banerjee has indicated that Bengal is ready to will waive tax on aviation turbine fuel (ATF) for any airline that is willing to operate direct flights from Calcutta to Europe.
This has been reported in telegraphindia.com dated 27 July 2015.
She had a meeting with senior airport officials and bureaucrats in her entourage before she board Air India's Calcutta-Delhi-London flight where she made this announcement. She has asked the airport director to start the ball rolling and approach airlines with this unique offer.
However, how far this would appeal to airlines is a matter of debate – as officials of several international airlines feel that such flights would be viable only if there was a steady flow of business fliers who weren't "price-sensitive" and who were frequent travelers. That is, sadly, not there because Kolkata offers very few business-class passengers to airlines. The reason is the lack of industry. There used to be at least two European carriers, British Airways and Lufthansa that have left the city because of low yield.
Incidentally, the Bengal Global Business Summit held in last January could not attract any international airline to provide direct connectivity to Europe and/or the US.
(Image courtesy wikimediacommons.org)

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