The Capital Delhi-National Region's second airport in Jewar, Uttar Pradesh, is expected to benefit from significantly lower value important to carriers. Fuel is by far the largest in an airline's profit and loss statement," Christoph Schnellmann, chief executive officer, Noida International Airport Ltd, told Mint.
"If it is something that we can do, or the government can do to lower some of those costs, it will ultimately bring down the cost of travel for passeng gers. Air travel is price sensitive s added tax on aviation fuel, according to industry executives and experts.
e 1 e The existing airport catering to Delhi-NCR, in Gurugram, Haryana, charges a value added tax of 25% on aviation turbine fuel, while the tax at the new airport will be about 1%. Airlines spend 35-40% of their total expenditure on fuel.
"One of the things we do have to offer is lower VAT on ATF. That is everywhere," Schnellmann said.
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