International civil aviation trade body IATA has criticized the finance ministry’s decision to impose service tax on international first and business class tickets since 2006, saying that “such taxes are illegal by International Civil Aviation Organization (ICAO) rules.” The IATA director-general (DG) Giovanni Bisignani also termed the financial condition of Indian carriers as precarious, saying he was concerned about their $13 billion debt. Talking about the imposition of the aforementioned service tax by the Indian finance ministry — which he termed as illegal — the IATA DG said, “It is an embarrassing situation for such a relevant country as India is an ICAO Council member and a signatory to the Chicago convention. While pointing out that private Indian carriers are now reporting profits or shrinking losses after the recession, the IATA DG nevertheless said, “Indian carriers will still lose an estimated $0.4 billion this year. And I am concerned about their $13 billion debt. In a market as rich in potential as India, this precarious financial situation indicates that structural weaknesses must be addressed.”

India’s largest airline by passengers carried, Jet Airways (India) Ltd, will start daily nonstop flights from Delhi to Milan from 5 December, making Milan the 24th international destination on airline’s international network. Jet Airways will use Airbus 330200 aircraft to connect Delhi Milan route, the only one to offer direct air link on the India Italy route. A media statement said this flight will allow to connect other Italian cities such as Florence, Rome, Venice and Pisa. Mint had reported on Jet Airways’ Milan flights on 21 September.

Virgin Blue Holdings gained interim approval Thursday from the Australian antitrust regulator for an alliance with Etihad Airways on flights to Abu Dhabi. The endorsement allows both airlines to prepare for an alliance and promote it to customers before a final ruling, the Australian Competition and Consumer Commission said. Virgin Blue’s chief executive, John Borghetti, said the carriers would begin sales Oct. 1. The airlines will operate 27 flights a week between Australia and Abu Dhabi, he said.
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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).