U.S, March 6 -- Denmark government is proposing a VAT exemption for airlines that primarily operate domestic flights within the country.

This move aims to support airlines, simplify regulations, and encourage a higher volume of domestic air travel.

Previously, only airlines with a majority of international services enjoyed VAT exemption.

Transport Minister Thomas Danielsen believes the new rule will "stop punishing" airlines for focusing on domestic routes and "make room for more" such flights.

This change could significantly benefit Midtjyllands Airport, a small domestic hub facing potential closure.

Midtjyllands Airport, formerly Karup Airport, is a Danish airport serving nine municipalities in central and western Jutland.

It is l...