In major news since our last update; Indigo to launch direct flights between Mumbai and Copenhagen from Oct 08 and the airline is also set to launch direct flights to Greece from January 2026 using India's first Airbus A321XLR aircraft; Centrum Air to launch direct flights between Delhi and Tashkent from October 03; IGI Expansion - Terminal 3 to increase overseas passenger capacity by 50% and Terminal 2 to reopen with Smart Tech; GST on premium travel to increase from 12% to 18% from Sep 22; FTI-TTP facility has been extended to 5 more airports taking the total to 13 airports in India. These and more updates in the September edition.

New GST Takeoff: What the September 2025 Overhaul Means for Travel & Stays:

Starting September 22, 2025, India's revamped GST (often called “GST 2.0”) replaces multiple slabs with a leaner two-tier structure of 5% and 18%, with select luxury goods taxed at 40%. For the travel and hospitality sector, this change brings both relief for many travellers and increased costs for those opting for premium services. Here's how your next trip could be impacted.

Air Travel: Economy Steady, Premium Jumps

What stays the same:

• Economy class tickets will continue to attract 5% GST - unchanged under the new regime.
• The key is that the applicable GST is determined by the date of invoice / payment, not the travel date. So if you have booked & paid before September 22, the old rates apply even if your flight is later.

What's changing:

• For premium economy, business, and first class, GST will go up from 12% to 18% under the new system.
• That's effectively a 50% increase in the tax component for these higher-end seats, which airlines are likely to pass on to passengers.

Hotel Stays: A Big Win for Mid-Tier & Budget Bookings

The new structure simplifies hotel taxation into three bands:

• Rooms up to ₹1,000/night → GST exempt (0%) (no change).
• Rooms ₹1,001 - ₹7,500/night → now taxed at 5% (without Input Tax Credit, or ITC), down from 12% with ITC.
• Rooms above ₹7,500/night → will continue to attract 18% GST.

In practice, this means many mid-range and budget hotel stays will become noticeably cheaper. Accordingly for rooms priced ≤ ₹7,500, the maximum relief is about ₹525 per night on tax.

DGCA approves IndiGo's 6-month extension of agreement with Turkish Airlines:

The Directorate General of Civil Aviation (DGCA) has approved IndiGo's request to extend its wet lease agreement with Turkish Airlines for another six months, till February 28, 2026 - the present extension was supposed to expire on August 31.

Air India and Air Astana sign codeshare agreement to expand connectivity:

Air India and Air Astana have entered a codeshare partnership covering flights between India and Kazakhstan. The agreement will allow Air India to place its designator code on Air Astana's Almaty-Delhi and Almaty-Mumbai services, offering customers seamless single ticket travel, baggage through check-in, and enhanced access to Central Asia. The partnership builds on their earlier interline arrangement signed in 2025.

Now, you can skip long immigration queues at 13 airports across India:

India's Fast Track Immigration - Trusted Traveller Programme (FTI-TTP), launched earlier this year to speed up and simplify immigration clearance for travellers, has now been rolled out to five more airports across the states of Uttar Pradesh, Punjab, Kerala and Tamil Nadu. The programme was first introduced at Terminal 3 of Delhi's Indira Gandhi International Airport in June 2024, before expanding to seven other major hubs in January 2025: Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Kochi, and Ahmedabad. It aims to provide Indian nationals and Overseas Citizens of India (OCI) cardholders with a faster, smoother, and more secure immigration process for international departures and arrivals.

IGI Expansion: Terminal 3 Goes Bigger, Terminal 2 Reopens with Smart Tech:

Indira Gandhi International Airport's T3 is expanding with plans to boost international capacity by 50% this winter. This has been made possible with a domestic pier being converted for international use boosting the overseas passenger capacity to 3 crore from 2 crore annually, a 50% rise. A new pier is also being planned for 2028 pushing international handling capacity to 4 crore passengers annually.

Delhi Airport's upgraded Terminal 2 to reopen on October 26 with new tech

Delhi Airport's Terminal 2, which was closed in April this year for a comprehensive upgrade so that it was “future ready” to handle the soaring rush, will reopen on October 26 with a host of new features, including self-service baggage drop and six passenger boarding bridges equipped with autonomous docking, a first for India. The opening coincides with the start of the aviation winter schedule.

About 120 daily domestic flights of Air India and IndiGo will shift operations to the refurbished terminal from the intervening night of October 25-26, operator Delhi International Airport Ltd (DIAL) said.

Update on Navi Mumbai International Airport (NMIA)- Meet 'NMI':

NMIA has been assigned the three-word location code “NMI," as per the International Air Transport Association (IATA) website. Mumbai's current international airport, the Chhatrapati Shivaji Maharaj International Airport (CSIA), continues to use BOM.

The launch of the airport, scheduled for end September, has been postponed by a couple of weeks due the incessant rains in Mumbai. A new date for the launch has yet to be announced. However airlines have begun announcing their plans for the new greenfield airport:

Air India Express has announced 40 daily arrival and departure domestic flights connecting 15 cities starting from the airport's first phase of operations. The Air India group said it plans to scale up its Navi Mumbai operations to 55 daily departures by mid-2026, including up to 5 daily international flights, and further to 60 daily departures (and 60 arrivals) by winter 2026.

IndiGo has planned a total of 36 domestic departure and arrival flights connecting 15 cities from day one. By November, it planned to increase its flight frequency to 158 daily arrivals and departures, including 14 international departures. However, since the commissioning of the airport has been delayed, international operations are likely to begin only next year, said an aviation source.

Akasa Air plans to start with 15 daily domestic flights, increasing it to over 40, including 8-10 international flights by summer 2026.

Centrum Air to launch direct flights between Delhi and Tashkent from October 03:

Centrum Air, Uzbekistan's largest private airline, will begin direct scheduled services between Delhi and Tashkent from October 03, 2025. Operating twice weekly on Tuesdays and Fridays, the airline will use Airbus A320neo, A321neo, and A330-300 aircrafts. The service, supported by Aeroprime Group as the exclusive GSA in India, is expected to strengthen air connectivity, tourism, and trade links between India and Central Asia.

Here is the flight schedule for the twice-weekly service:

Indigo to launch direct flights to Copenhagen from Mumbai starting Oct 08:

IndiGo has announced the launch of direct flight services to the Danish capital city of Copenhagen from Mumbai, starting October 8, further expanding its international network into Northern Europe. Copenhagen will be the airline's 44th international and 138th overall destination.

The airline said the new services will be operated three times a week, using its Boeing 787-9 Dreamliner aircraft, taken on wet/damp lease from Norse Atlantic Airways.

Here is the flight schedule for the thrice-weekly service:

IndiGo to launch direct flights to Greece from January 2026 using India's first Airbus A321XLR aircraft:

Athens, Greece will be the first destination to be served by India's first upcoming Airbus A321XLR aircraft, according to an official announcement by IndiGo Airlines. The airline is scheduled to receive the aircraft by the end of 2025 and will begin six weekly direct flights to Athens from January 2026, subject to regulatory approvals.

With this launch, IndiGo will become the only Indian airline to offer direct flight services between India and Greece. The routes will connect Athens with both Delhi and Mumbai, operating three flights per week from each city. The new services will also provide access to Greek islands such as Santorini, Mykonos, and Crete, along with connections to other European cities. IndiGo said the flights will support leisure travel, MICE, and wedding tourism, while strengthening its presence in Europe.

IndiGo and AEGEAN sign MoU for codeshare partnership:

IndiGo and AEGEAN have signed a Memorandum of Understanding for a codeshare agreement to expand connectivity between India, Greece and Europe. Subject to regulatory approvals, IndiGo will start six weekly flights to Athens in January 2026, while AEGEAN will launch services to Delhi and Mumbai in 2026. The partnership will integrate both networks, enabling seamless travel across India, South Asia and Europe.

New entry rule: Indonesia mandates use of new app for all visitors before arrival:

Indonesia has introduced a mandatory new digital platform, the All Indonesia app, to simplify and speed up border entry procedures for all international travellers. From September 01, 2025, the app consolidates immigration, customs, health, and quarantine forms into a single system, easing arrival processes at major airports and seaports. Currently launched at Bali's Ngurah Rai International Airport, Jakarta, Surabaya, and Batam Port, the app's use will become compulsory at all Indonesian international points of entry by October 2025. This integrated system replaces several older protocols, including separate health and customs declarations previously submitted on multiple platforms.

For visitors from India and other countries, the app does not replace visa or electronic visa on arrival requirements, which must be arranged separately. Indian travellers should also note the mandatory Bali tourism levy of 150,000 Indonesian Rupiah, payable via the LoveBali website, app, or on arrival for those visiting Bali.

Argentina eases entry for Indians with valid US visas:

Argentina has announced that Indian citizens holding valid US tourist visas will no longer need to apply for an Argentine visa or Electronic Travel Authorisation (AVE) to enter the country. This new policy aims to attract more tourists and boost tourism revenue.

US State Department scraps overseas interviews for B1/B2 visas:

The US State Department has updated the non-immigrant visa (NIV) application process. According to a statement released by the US State Department, NIV applicants, including those seeking B1 (business) and B2 (tourist) visas, must now schedule their visa interviews at a US embassy or consulate in their country of citizenship or legal residence. This is with immediate effect.

This policy shift eliminates the option for applicants to book quicker visa appointments abroad. As a result, Indian travellers who need to travel to the US urgently, can no longer seek expedited B1/B2 visa interviews in other countries. As per reports, the current wait time for B1/B2 visa interviews in Hyderabad and Mumbai is three and a half months, four and a half months in Delhi, five months in Kolkata, and up to nine months in Chennai.