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GST Hike on premium air travel sparks IATA concern

The GST Council has announced an increase in the Goods and Services Tax on premium economy, business, and first-class airline tickets from 12% to 18%. This change will not affect economy class fares, which remain under the current tax rate. The move is expected to make premium travel more expensive, potentially influencing passenger preferences and demand for higher-class services.
The International Air Transport Association (IATA) has expressed disappointment over the decision, saying it could negatively impact India’s aviation growth story. Sheldon Hee, a senior IATA official, stated that the increase goes against the efforts of Indian airlines, which have been investing heavily in premium products to enhance passenger experience and attract more travellers to premium cabins.
India has been recognised as one of the fastest-growing aviation markets in the world, marked by record aircraft orders and the development of world-class airport infrastructure. According to IATA, the sector holds immense potential to contribute to the country’s economy, both through direct airline growth and indirect benefits such as tourism, business connectivity, and trade facilitation.
Industry observers believe that the GST hike could create a pricing gap large enough to push premium travellers towards foreign carriers or even other modes of transport for shorter regional routes. This may, in turn, reduce the competitiveness of Indian airlines on both domestic and international sectors, particularly in premium travel segments.
The decision comes at a time when airlines have been expanding their premium offerings, adding better seating, upgraded in-flight services, and enhanced lounge experiences to cater to rising demand among business and leisure travellers willing to pay for comfort. A higher tax burden may offset these investments, slowing down growth in the premium travel category.
While the government has not issued a detailed explanation for the rate hike, it is believed to be part of broader revenue-raising measures under the GST revamp. However, IATA and other industry stakeholders have urged policymakers to reconsider, warning that the move could undermine the sector’s contribution to India’s economic ambitions and global aviation standing.
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Commuters will have to wait six months more to travel on new Sadhu Vaswani bridge | Pune News

Pune: The civic body has finished around 50% of construction work on the new Sadhu Vaswani bridge in the Koregaon Park area, prolonging the wait for the project’s completion to at least another six months. At present, it is unlikely that the bridge will be ready for commuters before March 2026. Regular travellers to locations like Koregaon Park, Wadia College Chowk, Bundgarden, and around Council Hall have been facing daily hardships owing to traffic diversions introduced to assist the bridge work since 2024. Commuters said the detours increase travel time significantly, and the project should be finished at the earliest. Local commuter Ashish Gaikwad said a deadline is important to wrap up the work in progress. “People are already suffering a lot because of traffic restrictions. We want the administration to conduct repeated inspections of the work to ensure that there are no unnecessary delays,” he suggested While Pune Municipal Corporation (PMC) initiated work on the new bridge last year, a large duration of time went in demolishing the old Sadhu Vaswani bridge. Civic officials claimed that the work is progressing at the expected pace now, and the target has been set to finish it either by March 2026 or a few days before that. Once ready, the bridge will expedite commuting in the area. Its four dedicated lanes for vehicles will double the capacity of the old bridge, which had two narrow lanes. The bridge will connect Koregaon Park to the VVIP Circuit House Road. At present, commuters go via the Mangaldas Road-Wadia College-Bundgarden Road stretch between these areas. A PMC official said, “The project is delicate and challenging as the bridge is coming up above rail tracks. Works are being carried out without disturbing rail operations. We are working in coordination with the railway administration.” Demolition of the old bridge above the railway tracks had also been conducted as a joint operation between civic and railway authorities. Now, PMC has once again approached Railways, seeking a go-ahead to lay a water pipeline crossing the rail tracks from below. Officials said this water supply line was laid above the tracks along the old bridge. It will not be possible with the new infrastructure, so a plan has been formulated to align it below the tracks. Tunnel work for the pipeline has already started.
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All lines suspended as Tube strike wipes out rush hour services- latest updates – London Evening Standard
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India arranges additional flights to help stranded passengers from Kathmandu amid Gen-Z protests in Nepal

“With the opening of the airport operation in Kathmandu, @MoCA_GoI, in coordination with Air India & IndiGo, has arranged additional flights this evening & over the next few days, alongside scheduled services resuming tomorrow. Airlines have been advised to keep their fares within reasonable levels,” Civil Aviation Minister Kinjarapu Rammohan Naidu posted on X.
Hundreds of Indians had been unable to return home as Tribhuvan International Airport suspended operations when youth-led demonstrations spilled into the streets of Kathmandu, disrupting public life and raising safety concerns. The swift mobilisation of flights is aimed at clearing the backlog while keeping fares in check.
Air India mounted special services to clear the backlog. “Air India is operating special flights today and tomorrow from Delhi to Kathmandu and back to help passengers who have been stranded due to the recent developments in Nepal. Our scheduled operations will also resume from tomorrow,” the airline said, adding it was working with government agencies to facilitate travel.
Nepal has been gripped by unprecedented youth-driven demonstrations over unemployment, political corruption and disenchantment with traditional parties. The unrest has paralysed daily life in Kathmandu, forced a temporary airport shutdown and heightened concerns in the region about instability in the Himalayan nation.
The Ministry of External Affairs (MEA) issued a stark advisory asking Indians to defer travel until stability returns. “Indian citizens presently in Nepal are advised to shelter in their current places of residence, avoid going out onto the streets and exercise all due caution. They are also advised to follow local safety advisories from Nepal authorities as well as the Embassy of India in Kathmandu,” the MEA said.
IndiGo confirmed it had resumed flights. “Flight operations to and from #Kathmandu have now resumed… We sincerely appreciate your patience and understanding and remain committed to ensuring safe and smooth journeys,” the airline said.
Authorities in Delhi are also monitoring ticket prices to ensure airlines do not exploit the crisis as Nepal’s protests show no signs of abating.
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