High sales taxes in India on air tickets are negatively affecting the country’s civil aviation industry, warn aviation experts. “While taxes provide a tangible short-term revenue boost to the government coffers, increased taxes in the long term can be outweighed by the cost to the underlying economy,” aviation finance expert Charles Tyler says.

In a major act of relief for struggling Air India, state-run oil marketing companies agreed to extend the airline’s credit limit by two to three months for the purchase of jet fuel, instead of requiring daily payments. “Instead of cash-and-carry, Air India will from now on make payments on the basis of this credit limit of two to three months. So, the tension of making daily payments is now over,” says Aviation Minister Vayalar Ravi. Air India has been paying 165 million rupees ($3.6 million) a day for fuel.

NEW DELHI — India’s air force and navy will take the final deliveries of the 123 Hawk advanced jet trainers (AJT) they have ordered by 2016. Defense Minister A.K. Antony says the government signed an agreement in March 2004 with BAE Systems and Rolls-Royce Turbomeca U.K. for procurement of 24 Hawks, with state-owned Hindustan Aeronautics Ltd. (HAL) building another 42 aircraft under the technology-transfer route.