The government of the Indian state of Tamil Nadu has asked airlines to run more flights and serve more domestic and international destinations from Chennai airport, after cutting the tax on jet fuel there, The Hindu reports.
The state reduced value added tax on aviation turbine fuel at Chennai from 29% to 16%, and to 1% for scheduled airlines refuelling at other airports in the state. Airlines had repeatedly said a lower fuel tax was a condition for expanding services.
Sources told the paper that one of the biggest operators at Chennai had promised to increase its flights by nearly a quarter and another by about 8%, though no timetable has been given.
The changes followed several meetings between the state government, the Airports Authority of India and airlines.
Source: The Hindu
Photo: Marina Beach in Chennai by Dey.sandip, CC BY-SA 4.0, via Wikimedia Commons. Illustrative image of Chennai.
