http://economictimes.indiatimes.com/articleshow/1434639.cms
Unhappy with 'service', business to fly economy Imposition of a service tax on international business and first-class air travel is likely to see many executive-class passengers opt for the economy category, more so in the short-haul. Business and first class international fares are 3-5 times higher than economy fares. With airlines in no mood to absorb the tax, it will further widen the fare difference business and economy-class travellers. A day after the Budget, it is still unclear whether the tax will be imposed on the full list fares or the discounted ones that airlines offer to corporate travellers. This may even force airlines to change the seat-mix between business and economy seats in international flights, say many in the industry. Generally, 30-35% of all seats in a flight are allocated to business and first class categories. >>
