Source: News Bharati English11 Nov 2016 16:03:02
New Delhi, November 11: In a resolution to fund the regional air connectivity scheme, Government on Friday decided to levy up cost of Rs 8,500 on every flight on major routes. The levy amount will be put on the entire flight and cost of each ticket will be increased according to the number of seats on the flight.
Civil Aviation Secretary R N Choubey on Friday said the levy would be up to Rs 8,500 per flight depending on distance. "The levy for an up to 1,000 kilometre length of scheduled flight will be Rs 7,500 per flight, Rs 8,000 for a 1,000 to 1,500 kilometre flight and Rs 8,500 for flights above 1,500 kilometre," Choubey said.
The ambitious scheme -- UDAN (Ude Desh ka Aam Naagrik) -- seeks to connect small cities by air as well as make flying more affordable for the masses. To provide viability gap funding for the flights operated under the regional connectivity scheme, the Ministry would impose a levy on every departure on major air routes such as the national capital, Mumbai, Chennai, Hyderabad, Bengaluru and Kolkata.
The government will be creating the Regional Connectivity Fund (RCF) for UDAN. The govt expects to have Rs 400 crore for RCF. "In addition to this, another 20 per cent (funding) will come from state governments. We are roughly looking at around Rs 500 crore per year available in the kitty," Choubey noted.
The move would push airfares slightly higher as airlines are expected to pass on the burden to fliers. The funding is being provided since the fares of half of the seats operated in a particular flight under UDAN would be capped at Rs 2,500 for one-hour duration. This cap would be applicable for distance of 476-500 kilometres.
The limit of RCS airfare would vary from Rs 1,420 to Rs 3,500 for fixed-wing aircraft. For helicopters, half-an-hour ride under the scheme would cost Rs 2,500 and for over one- hour duration, the cap would be Rs 5,000.