India’s national budget for 2015-16 has very little for the trouble-torn Indian airlines industry to cheer up. The only consolation in the budget was the provision of Rs.25000-million for the loss making state owned carrier Air India (AI) and Rs.800-million for the Airports Authority of India (AAI).

   In this context, Amber Dubey, partner and India head (aerospace and defence) of the consulting firm KPMG says, “The beleaguered industry’s long pending expectations of tax rebates on aviation turbine fuel (ATF), maintenance, repair and overhaul (MRO) services, airports and general aviation have been ignored yet again. Higher service tax will enhance airfares, loss of MRO revenue, jobs and taxes to Sri Lanka, ASEAN (Association of South East Asian Nations) and the Gulf countries will continue.”

   On the other hand, Sanat Kaul, Chairman of International Foundation for Aviation and Development, India Chapter,....