Air India, India’s leading global airline, and Air Astana, the flag carrier of Kazakhstan, have announced a new codeshare agreement to expand flight options and connectivity for travellers between India and Kazakhstan.

Under this partnership, Air India will place its ‘AI’ designator code on Air Astana’s flights between Almaty and Delhi, and Almaty and Mumbai. This enables Air India passengers to conveniently book single tickets and enjoy through check-in for their journey to Almaty, a fast-growing hub for both tourism and business in Central Asia.

Speaking on the announcement, Campbell Wilson, Chief Executive Officer & Managing Director of Air India, said:

“Our new codeshare partnership with Air Astana creates stronger air links to Kazakhstan, a fast-growing market with immense potential for tourism. Beyond serving leisure travel demand, our partnership will also support trade and cultural exchanges between our two countries, while bringing a new destination in Central Asia closer to our customers.”

Peter Foster, CEO of Air Astana Group, shared:

“We are delighted to have concluded a comprehensive codeshare agreement with Asia’s oldest airline. Air India is an exceptionally well-managed business, which operates a comprehensive network of flights to, from and across India, the world’s most populous country and one of the fastest growing travel markets. India is of key strategic importance to the Air Astana Group as we increase flights from Kazakhstan to Delhi, Mumbai and Goa. The codeshare will accelerate the increasingly strong business, tourist and student traffic flows between our two countries.”

The agreement builds upon an interline partnership signed earlier in 2025, under which Air India passengers already had access to destinations across Central Asia and China via Almaty, including Astana, Bishkek, Tashkent, Dushanbe, and Urumqi. Meanwhile, Air Astana customers gained access to 18 domestic and 9 international destinations through Air India’s network.

With this codeshare step-up, passengers will benefit from greater convenience, a wider destination network, and simplified travel through a single booking and check-in process. Subject to regulatory approvals, the codeshare flights will gradually be made available for booking across Air India’s website, mobile app, and travel agents worldwide.

"In the wake of India’s recent Goods and Services Tax rationalization, the accommodation landscape for discerning travelers remains largely unchanged at the premium end. The simplified tax structure, which reduces amplification of costs at the economy and mid-market tiers, preserves the existing 18 per cent levy on nightly stays exceeding ₹7,500. The tax overhaul eases burdens for mid-tier counterparts, potentially stimulating overall travel demand, a trend from which established operators naturally benefit for hotels up to ₹7,500 with a GST of 5% (without any input credit facility) from the existing 12% GST.

We urge the authorities to reconsider the GST structure for hotel-based dining outlets and align it with that of stand-alone fine dining restaurants. A uniform tax rate will ensure fair competition, healthier growth of the industry, and better value for consumers.
In essence, the GST evolution affirms our resolve: even as regulatory winds shift, our commitment to excellence remains steadfast. We continue to invest thoughtfully in staff training, amenity enhancement, and sustainable practices, confident that the regulatory bedrock affords us clarity—and the freedom—to elevate each guest’s experience with distinction and unwavering warmth."- Ruban Das, General Manager, Hyatt Regency Chennai Submission from Hyatt Regency, Chennai

The recent GST reforms announced at the 56th GST Council meeting are set to reshape India’s travel and tourism industry, placing travel agents at the intersection of new opportunities and emerging challenges.

For hotel accommodation priced up to ₹7,500 per day, the GST rate has been reduced from 12% with input tax credit (ITC) to 5% without ITC. While this makes travel more affordable for consumers, travel agents lose ITC benefits, potentially compressing margins.

In non-economy class air travel, the GST rate has increased from 12% with ITC to 18% with ITC. This change raises fares for business travelers but ensures agencies serving corporate clients can still claim full ITC, aiding cash flow management.

One of the most significant developments is the amendment of Section 13(8)(b) of the IGST Act, which now allows services provided by travel agents and tour operators to foreign clients to qualify as exports. This recognition enables agencies to avail zero-rated benefits under GST, including refunds of input tax credit, while also strengthening their global competitiveness.

The motor vehicle transport sector has also seen changes. The GST rate remains at 5% without ITC, but for those opting for full ITC, it has risen from 12% to 18%, requiring agencies to evaluate their business models carefully.

Commenting on the reforms, Jyoti Mayal, chairperson of the Tourism and Hospitality Skill Council, said,“The latest GST reforms bring both relief and responsibility for travel agents. On one hand, reduced hotel tariffs will stimulate demand in the domestic tourism segment. On the other, the removal of ITC in this category will require agents to realign their pricing strategies. Most importantly, the recognition of intermediary services as exports is a game-changer, unlocking opportunities for Indian travel businesses to expand their global footprint while enjoying the benefits of zero-rated taxation. Luxury travel is as important and needs to be promoted more, as the returns are higher, spends are higher, and it is exclusive. India needs to focus on inbound luxury tourism to stay competitive with neighbouring countries”.

As the sector adapts, the focus will be on balancing affordability with sustainable business models, ensuring Indian travel agents remain competitive in both domestic and international markets.