Jet crash lands

TravTalk - India - - BULLETIN -

The be­gin­ning of this year has de­scended a pall of gloom over In­dian skies. How­ever, the crash­ing of Jet Air­ways comes as no sur­prise to those who trou­bles started when its then Chair­man, Naresh Goyal, de­cided to buy Air Sa­hara in spite of many ex­perts warn­ing him against it. Af­ter Jet ac­quired the loss-mak­ing Air Sa­hara for about ` 1,450 crore in 2007, it was branded as the bud­get carrier JetLite. Around the same time, India wit­nessed a surge of of­fer­ing cheaper tickets. This ac­qui­si­tion made Jet bleed and the air­line wrote off its en­tire in­vest­ment in 2015. Also, in spite of low-cost car­ri­ers mak­ing India, Jet con­tin­ued to fo­cus greatly on cor­po­rates. How­ever, this de­ba­cle may now help turn the govern­ment’s at­ten­tion to­wards in­clud­ing avi­a­tion tur­bine fuel (ATF) un­der the purview of Goods and Ser­vices Tax (GST). To­day, fuel makes up about 40 per cent of the cost of run­ning an air­line in India; lit­tle won­der then that air­lines strug­gle to make money even as pace. Cur­rently, ATF prices vary from state to state. In Ma­ha­rash­tra and Delhi, it at­tracts a tax of 25 per pow­ers that be!

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