India’s domestic airfare to rise to increase regional connectivity

Published on : Saturday, November 12, 2016

flightAir-passengers in India have to pay more for their flight tickets to travel to the six metro cities and several other big cities within the country from 1st December, 2016.

 

 

As per a new plan, the Indian government is about to increase the value of the flight tickets in order to create a fund, which will help the government to provide connectivity to the small cities in India.

 

 

The information has been revealed on 11th November by the Aviation secretary and also the architect of the regional connectivity scheme (RCS), Mr. R N Choubey. He has informed that from 1st December, the air carriers will be charged with Rs.7500 for up to 1,000 km of distance, Rs. 8000 for a distance between 1000 km and 1500 km and Rs.8500 for over 1500 km of distance. The initial amount will be charged to the airlines and they will charge the passengers with an extra amount between Rs.60 and Rs.100.

 

 

It has been found from the airlines that the levy will be according to the consumer price index. Airline officials also informed that the fee will be revised from time to time.

 

 

According to Choubey, they expect to raise Rs 400 crore from this cess for the regional connectivity fund and another 20% of the funding will come from state governments. He has also informed that at the end of the year, the authorities are expecting to receive about Rs. 500 crore.

 

 

The money received from the airlines will be used to offer more regional flights to provide viability gap funding (VGF).

 

 

According to the airline authorities, from January 2017, the first RCS flight will start to operate.

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