50 SKY SHADES - World aviation news

Regional connectivity scheme: Govt plans to levy departures on trunk routes

Download: Printable PDF Date: 26 Jun 2016 19:59 (UTC) category:
Publisher:
Regional connectivity scheme: Govt plans to levy departures on trunk routes - Airlines publisher
Dana Ermolenko
Country: India Aircraft: Airplanes
Source: Indian Express

The government plans to impose a levy of Rs 7,000-8,000 per domestic departure flight on all trunk routes to subsidise airfare on operations to unconnected cities, Minister for Civil Aviation Ashok Gajapathi Raju said. This levy is estimated to generate Rs 500 crore annually to be used to fund the Regional Connectivity Scheme (RCS), under which airlines will offer services at an all inclusive airfare not exceeding Rs 2,500 for a one-hour flight.

“I think as of now it (levy) will come close to Rs 500 crore annually and we have four regions — North, South, East, West — to begin with,” Raju said, adding that the levy could be Rs 7,000-8000 per departure flight. While clearing the National Civil Aviation Policy 2016 earlier this month, the Union Cabinet announced the Regional Connectivity Scheme as the ‘centerpiece’ of its policy, aiming to raise the sale of domestic tickets to 30 crore in five years from 8 crore in 2015.

Besides the levy, the subsidised fare of Rs 2,500 will be funded through exemption to airlines from a host of charges, sharply lower services tax on tickets and reduced value added tax (VAT) on aviation turbine fuel. The government changed its earlier plan to levy a 2 per cent cess on each ticket to fund the RCS. Raju said the ministry thought a levy per departure flight may result in airlines absorbing some of the charge and not passing it on to the customer entirely. The government plans to start the RCS from second quarter of 2016-17.





Recommended

FAA certifies Boeing 737-10, bringing the largest 737 MAX variant to market

The U.S. Federal Aviation Administration has certified the Boeing 737-10, the newest and largest member of the 737 MAX family, paving the way for Boeing [NYSE: BA] to begin customer deliveri...

“Discover Airlines Shark” takes to the skies as first AeroSHARK-enhanced Airbus begins scheduled operations

A Discover Airlines Airbus A330 has become the first Airbus aircraft worldwide to enter regular commercial service after undergoing a full-scale AeroSHARK retrofit, marking a signi...

AMAC Aerospace records strong business growth as new contracts and approvals drive demand across core services

AMAC Aerospace Group continues to experience strong business momentum, marked by new certifications, contract wins and rising demand across its maintenance, completion and aircraft modification activi...

Daher highlights expanding business aviation role of TBM and Kodiak at NBAA-BACE 2026

Daher Aircraft will present its TBM and Kodiak aircraft families at next week’s NBAA Business Aviation Convention & Exhibition (NBAA-BACE), showcasing how their combination of performance, e...

Android Apps development in Riga, Latvia