While most airlines have opposed the imposition of a new levy on airfare to fund the government’s regional air connectivity scheme – UDAN, Air India and Air Asia have agreed to levy a surcharge of Rs 70 per ticket.
“Other airlines are yet to do so as the matter is now in court,” an aviation ministry official said.
According to ministry sources, bids have been received for 190 routes under the scheme, for several new airports, including Bhavnagar, Cooch Behar, Jamshedpur and Jalandhar. The scheme aims to promote low-cost flying between such cities, capping the fare at Rs 2,500 for an hour’s flight and compensating for the airline’s loss through a regional connectivity fund. A levy of Rs 8,500 per flight will be applicable on routes connecting the major cities of Mumbai, Delhi, Bengaluru, Chennai, Hyderabad and Kolkata. The levy amount would be for an entire flight and the price of each ticket could go up depending on the number of seats in a flight. However, the Federation of Indian Airlines (FIA), of which IndiGo, Go Air, SpiceJet and Jet Airways are members, is opposing the levy. FIA members have a combined market share of 80 per cent. The case’s next hearing is on February 1.
21/01/17 Aditya Anand/Mumbai Mirror
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“Other airlines are yet to do so as the matter is now in court,” an aviation ministry official said.
According to ministry sources, bids have been received for 190 routes under the scheme, for several new airports, including Bhavnagar, Cooch Behar, Jamshedpur and Jalandhar. The scheme aims to promote low-cost flying between such cities, capping the fare at Rs 2,500 for an hour’s flight and compensating for the airline’s loss through a regional connectivity fund. A levy of Rs 8,500 per flight will be applicable on routes connecting the major cities of Mumbai, Delhi, Bengaluru, Chennai, Hyderabad and Kolkata. The levy amount would be for an entire flight and the price of each ticket could go up depending on the number of seats in a flight. However, the Federation of Indian Airlines (FIA), of which IndiGo, Go Air, SpiceJet and Jet Airways are members, is opposing the levy. FIA members have a combined market share of 80 per cent. The case’s next hearing is on February 1.
21/01/17 Aditya Anand/Mumbai Mirror
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