The Ministry of Finance has officially notified Akasa Air as a ‘designated Indian carrier,’ paving the way for the airline’s international flights.
In compliance with the sub-section (5) of section 5 of the Central Sales Tax Act, 1956, the Central Government has identified SNV Aviation Private Limited ( Akasa Air ) as a ‘designated Indian carrier.’ The ministry, through a notification, specified the airline’s registered office details and emphasized its status for the mentioned sub-section.
The relevant sub-section in the law stipulates that if a designated Indian carrier acquires aviation turbine fuel for its international flights, such transactions will be considered part of the export of goods from India. Essentially, this ensures that no tax is levied on fuel for international flights to prevent the export of taxation.
Akasa Air recently declared its international operations, with Doha, the capital of Qatar, being the inaugural international destination added to its swiftly expanding network. Commencing from March 28, 2024, Akasa Air is set to operate four non-stop flights weekly, linking Mumbai and Doha.
Claiming the title of the first Indian airline to embark on international flights within a remarkable 19 months since its inception, Akasa Air highlighted the significance of Doha as a major economic hub in West Asia with rich cultural heritage. The airline believes that offering direct and convenient travel options will boost trade and tourism between the two countries.
The Founder and CEO of Akasa Air commented on the development, emphasizing the strategic importance of connecting Mumbai, a key commercial hub, with Doha. He noted that this move would benefit diverse travelers, fostering tourism, commerce, and strengthening bilateral ties.
Furthermore, he stated that the expansion into Qatar signifies the next phase of growth for Akasa Air as it aspires to become one of the top 30 airlines globally by the end of the decade.
Since its launch in August 2022, Akasa Air has served over 77 lakh passengers, connecting 21 cities. The airline operates 22 Boeing 737 Max aircraft and has secured traffic rights to fly to Saudi Arabia and Kuwait, in addition to Qatar.
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