Category Archives: Aviation

Vipin Vohra, Chairman, Continental Carriers says, “Following the launch of GST in 2017, export air cargo was exempted from GST, starting January 2018. However, this exemption ended on October 1, 2022, imposing an 18% GST on air freight. Trade bodies have urged the government to reinstate this exemption, aligning with global practices where export freight services are zero-rated. The lack of exemption has distressed Indian freight forwarders, raised costs for exporters, and hindered cash flow, agents are calling for a permanent exemption. Cargo agents in India face significant challenges in obtaining GST reimbursements for export shipments. Delays in refund processing, complex documentation, and data mismatches between GST returns and shipping bills hinder smooth operations. Additionally, ambiguities in eligibility for Input Tax Credit (ITC) and blocked credits strain cash flows. The high compliance burden, coupled with inconsistent interpretations of GST laws, further exacerbates the issue. Expedited refunds, automation, clear guidelines, and a single-window grievance mechanism are essential to resolve these struggles effectively.”

Sunil Kohli, Managing Director, Rahat Cargo says, “Our government has all along been encouraging the shippers to accelerate their export activities which creates an economical growth within the country apart from yielding substantial foreign exchange. However, levying a GST on export products has resulted in an additional & avoidable financial liability on the exporters majority of whom have already been facing the fiscal roadblocks on various heads. And consequently, the businesses especially the SMEs have to encounter enhanced compliance requirements with multiple deadlines leading to higher administrative cost. The GST has many complexities with assorted tax rates & rules making it difficult for an average exporter to navigate without professional assistance which entails extra expenses. Moreover, certain products & services have become more expensive due to higher GST. Also, the GST portal has frequent technical glitches. It is therefore felt that the exports should be kept out of the GST regime.”

Arun Kumar, President, Association of Multimodal Transport Operators of India (AMTOI) says, “Rent-seeking behaviour is detrimental to any economy, especially one aspiring to be the third largest globally. Imposing taxes on exports or their components undermines cash flow for the MSME-dominated freight forwarding sector, which operates on razor-thin margins of less than 2%. With an 18% GST outlay and delayed reversals, their margins are decimated. This ill-conceived levy under GST is crippling agri-exports by air and jeopardizing the freight forwarding community’s survival.

Satish Lakkaraju, CEO, NexGen Logistics, Garudavega shares, “The introduction of 18% GST on air freight is significantly impacting the trade, logistics, e-commerce sectors, and causing distress among cargo agents and courier companies. This tax hike is driving up operational costs, resulting in higher freight charges for both businesses and consumers. Additionally, C2C (customer-to-customer) customers are unable to claim GST credit, making it an additional, non-recoverable cost. Since ocean freight is taxed at 5%, we recommend reducing the GST on air freight to be 5% as well, ensuring parity and easing the financial burden across the industry.”

“The imposition of 18% GST on air freight is a major setback for the trade, significantly increasing logistics costs and hampering India’s competitiveness in global markets. Cargo agents are deeply distressed, as this move threatens their sustainability amidst already tight margins. Lot of money / refund is pending of agents as the process of refund is manual and time consuming. The industry urges the government to reconsider this decision to promote ease of doing business and support India’s vision of becoming a global logistics hub.”

  The Delhi Customs Brokers Association (DCBA) received the CONCOR Exim Star Award for its outstanding trade facilitation initiatives in Delhi NCR region since its formation 62 years ago. The award was presented by Sanjay Swarup, CMD CONCOR in a glittering Customer Felicitation Day held recently.  Large number of cargo and logistics industry fraternity, and government officials from the Ministry of Railways/other allied ministries participated. “This special day is our humble attempt to express our sincere gratitude for the trust you have placed in us. Your continued partnership has been the cornerstone of our success and has empowered us to become a leading name in logistics solutions,” said Swarup. Devendra Singh Bhadoria, President DCBA said that this recognition shows strong bond between DCBA and CONCOR in facilitating the EXIM trade. He also commended CONCOR for its valuable end-to-end logistics services to the Exim trade across the country. Bhadoria assured full cooperation to CONCOR in achieving the Govt. of India’s target to reach a $5 trillion economy by 2027 and ‘Vikshit Bharat’ by 2047. Also, present on this occasion were DCBA Special Advisor N.G. Pillai, Vice President Ram Naresh Yadav, Hony. Joint Secretary, Rajesh Kumar Sharma, managing committee members Davender Lal Pipil, Mohit Sharma and Member Sumit Dhingra.

China Airlines has announced plans to order four 777-8 freighters with deliveries expected from 2029 for global operations. The new generation freighters will be used for long-haul cargo routes to North America and Europe. The 777-8Fs will join the current fleet of 777F. China Airlines said in a statement, “The next-generation 777-8F freighter has the same cargo hold specifications as the 777F fleet and will offer more operational and dispatching flexibility. Increased range and payload will provide synergistic benefits to the mixed fleet and enhance the cargo capacity of China Airlines.” According to China Airlines’ website, as of October 31, the airline had 17 freighters in its fleet, including nine Boeing 777Fs and eight Boeing 747-400Fs.

TIACA has signed a joint declaration supporting the launch of the ‘Aviation 4 All industry’ declaration developed by the International Aviation Forum (IAF). The declaration was developed by the IAF to set out clear goals to achieve sustainable growth and prosperity within the industry. So far over more than 40 organisations have signed up. The declaration sets out several goals for the aviation industry, including: delivering on environmental commitments to provide a “net zero” industry; enhancing the workplace to establish an inclusive and diverse working environment; increasing connectivity to enhance global accessibility; working with governments to enhance safety and security; and integrating throughout the value chain to provide an improved customer and shipper experience, adopting seamless technology-based solutions. It also aims to develop a customer-centric culture; improve operational performance; deliver financial efficiencies; and enhance the overall positive impact that commercial aviation has on society. “We are thrilled to be invited to support initiatives such as the Aviation 4 All vision as it confirms the value the global aviation community sees in what TIACA is doing to support the air cargo industry and the declaration’s contents are fully aligned to what we see as being vital for the sustainable growth and development of our industry,” said Glyn Hughes, director general.

  The Federation of Freight Forwarders’ Associations in India (FFFAI) has been awarded the ‘Eurasian Transportation Excellence Award’ at the 33rd Plenary Meeting of the International Coordinating Council on Trans-Eurasian Transportation (CCTT).  The event focused on enhancing logistical cooperation and addressing challenges in the Eurasian transport network. Participants discussed measures such as multimodal logistical planning, border-crossing facilitation, financial and insurance solutions, and the critical role of digitalization in logistics. This recognition highlights FFFAI’s exceptional cooperation, partnership, and contribution to the development of CCTT and the International North-South Transport Corridor. The 33rd Plenary Meeting (CCTT was held in a hybrid format with the support of the Federation of Freight Forwarders Associations of India (FFFAI). The meeting was attended by more than 100 representatives of government establishments, railways, seaports, shipping, investment and transport and logistics companies – members and partners of CCTT – from 18 countries (Russia, India, Iran, Kazakhstan, R. Korea, UAE, Austria, Germany, Singapore, Thailand, Egypt, Belarus, Azerbaijan, China, Mongolia, Hungary, Czech Republic, Turkmenistan).

Swiss WorldCargo has added its capacity to online booking portal WebCargo as part of efforts to expand its digital presence. Through the partnership, the airline’s bellyhold capacity will be available to book online by WebCargo’s forwarder users. The company added that the new partnership with WebCargo would enhance digital presence. The airline said its product portfolio will be bookable on WebCargo for selected markets in Europe, Asia and the Americas. This includes Swiss General Cargo and Swiss Pharma and Healthcare. These products can be paired with the Celsius Passive transportation solution for temperature-sensitive shipments and the X-Presso option for expedited transportation.