50 SKY SHADES - World aviation news

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

Download: Printable PDF Date: 26 Jun 2016 15:59 category:
Publisher:
Regional connectivity scheme: Govt plans to levy departures on trunk routes - Airlines publisher
Krista Kuznecova
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.



Loading comments for Regional connectivity scheme: Govt plans to levy departures on trunk routes...


Recommended

250th Embraer business jet delivery milestone in Latin America

Embraer announced the delivery of a Phenom 100EV and a Phenom 300E to two separate Brazilian customers, marking the company’s 250th business jet delivery in Latin America. The Phenom 100EV...

Business Aviation & How the Pandemic Has Changed Everything

The last few months have brought so many changes. From the way we travel to how we interact with one another, it’s easy to feel like we’re navigating uncharted territories. Booking a ...

Millennium club goes bigger with the rollout of Daher TBM 1000th airplane

The 1,000th TBM very fast turboprop aircraft has rolled out from Daher’s Tarbes, France final assembly line, with this milestone airplane – a top-of-the-line TBM 940 version – destin...

DC Aviation adapts successful Covid-19 testing strategy

Earlier this year DC Aviation introduced a pioneering programme of rapid Covid-19 pre-flight virus testing for all crew and flight support personnel. The measure was introduced to ensure that passenge...