If you are travelling on Air India and carrying baggage over 25 kg, you will have to pay more as the national carrier revised the applicable Excess Baggage Rate (EBR) on domestic sectors effective from Monday. Over 25 kg of excess baggage, passengers will have to pay Rs 100 extra along with 12 per cent of GST.
The airline revised its EBR to Rs 500 plus applicable GST per kg on all travel commencing on or after June 11 from an earlier Rs 400 per kg, except for Alliance Air flights, stated an Air India circular, which further said that GST rates will be applicable on the value reflected on all Excess Baggage tickets, issued in India, except from the exempted airports.
The circular dated June 6 stated that GST will be applicable on the value reflected on the EBT at the rate of 5 per cent in economy class and 12 per cent for other classes.
Notably, Air India has a baggage allowance limit of 25 kg, while other airlines allow merely 15 kg and charge between Rs 250 and Rs 400 per kg of extra baggage.
The national passenger carrier, however, decided not to charge extra fare in the name of fuel charge, but has clarified that it would revise ticket charges in coming days to meet the burden.
A Bloomberg report, however, said that India will soon revive the sale of its money-losing flag carrier with new guidelines after a recent attempt ended in a debacle last month.
The report, quoting Subhash Chandra Garg, a senior official in the Ministry of Finance, said that Prime Minister Narendra Modi’s administration is ready to “re-examine” its privatization process, including a clause requiring a minority state stake in Air India Ltd. The government is considering various options and doesn’t intend to insist on keeping 24 percent of the company, Garg added.
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According to the report, Modi’s most high-profile privatization plan ended in a whimper on May 31, as a deadline for prospective suitors passed by with none showing interest in the airline mired in almost $8 billion of debt.
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