Reducing Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) seems to have attracted domestic player who are slowly expanding operations from Ranchi’s Birsa Munda Airport (BMA).
“ATF is the major component of operating cost of any airliner so any reduction in tax means less cost and more savings. This is a one factor to attract domestic airliners to include Ranchi among their list of destinations,” said Director Airport Raju Raghvendra Kumar. VAT on ATF has been slashed down to 4 per cent, claimed to be lower than neighbouring states. Indian Oil and Reliance are major ATF suppliers in Ranchi.
Non-scheduled operators like Spirit Airway have begun their operations besides morning flights to Delhi by Go Airways likely to begin towards the end of October. Indigo and Spice Jet is likely to include more destinations. Apart from VAT, newly built terminal of BMA is claimed to be another factor that has attracted operators on domestic route.
The new terminal can facilitate take-off of as many as four aircrafts of dimension equivalent to Airbus A321 and has a turnaround time of just 30 minutes, claimed Kumar. “The new terminal has added to the airport infrastructure,” maintained Kumar.