Flying on domestic routes may soon get expensive with the Centre proposing changes to the Aircraft Rules of 1937 imposing a levy on scheduled flights.
The levy is for providing subsidy to airlines that want to fly on the proposed regional connectivity routes.
SubsidiesThe draft rules, dated August 26, proposes a regional air connectivity levy empowering the Centre to “impose a levy on scheduled flights being operated within India” to fund the plan.
Under the regional connectivity scheme, the government will provide subsidies to airlines for three years to enable them to fly passengers to unserved or underserved airports for a fare of Rs.2,500 an hour. The government plans to revive 50 dormant airports at about Rs.100 crore each in the next three years. There are 394 unserved airports and 16 underserved airports in India.
The regional air connectivity fund will be financed by a levy on domestic flights, contribution from the state governments and credit proceeds “from any other source as may be specified by the central government,” according to draft rules. The Centre has invited public comments on the proposed changes to the Aircraft Rules, till September 25.
