Draft Regional Connectivity Scheme- (Ministry of Civil Aviation) (01 Jul 2016)

Miscellaneous

The Ministry of Civil Aviation released the Draft Regional Connectivity Scheme for public feedback. The Scheme discusses one of the key proposals in the recently released National Civil Aviation Policy - capping of air fares for ‘regional’ flights.

Once a route is declared RCS eligible, the fare chargeable will be limited to a pre-determined amount, depending on the stage length, aircraft type and duration of flight. The lowest cap is Rs. 1,770 for routes up to 225 kilometres, while an 800 kilometre journey is capped at Rs. 4,070. To lessen the financial load of the capped fare, it will not be subject to airport operator levies and service tax will be levied only on 10 per cent of the taxable value of the ticket.

Feedback on the policy is being received till 22 July 2016.

The government hopes to grow the aviation industry in India severalfold over the next few decades, and sees smaller cities as a vital part in that push. Aside from more attractive pricing to entice flyers, proposals are also afoot to rejuvenate select under-utilised airports. It is also hoped that with increased passenger and freight demand, aircraft manufacturers will be willing to set up maintenance and manufacturing hubs in the country.

Tags : CIVIL AVIATION POLICY REGIONAL CONNECTIVITY