What the Union Budget means for frequent fliers in India

Livemint.com reports that "air travel is likely to become more expensive as domestic carriers deal with the double blow of an expanded service tax regime and a levy on crude imports from 1 April."

Brass tacks? It's going to cost five percent customs duty on crude petroleum, up from zero. Which means the all important fuel cost, which the article points out, "accounts for almost 40 percent of an airline’s operating costs" is going to sky rocket from its $80 barrel average of late.

Additionally, "Service tax on air travel is also being expanded to include domestic travel, and international flights in any class; it was earlier applicable only to international first and business class travel." But this tax is only on the basic ticket fare which is about 40 percent of the total.

This increase in operating costs will make it harder for Indian airlines to offer you sexy airfares for the next 12 months.