109th Day Of Lockdown

Maharashtra2384611326259893 Tamil Nadu130261846941829 Delhi109140846943300 Gujarat40155281832023 Uttar Pradesh3370021787845 Karnataka3341811878471 Telangana3222410123339 West Bengal2710917348880 Andhra Pradesh2542213914292 Rajasthan2317417620497 Haryana1993414904290 Madhya Pradesh1665712481638 Assam15537984935 Bihar1433010251111 Odisha11956797273 Jammu and Kashmir92615567149 Punjab71404945183 Kerala6535370828 Chhatisgarh3526283514 Uttarakhand3305267246 Jharkhand3192217022 Goa203912078 Tripura177313241 Manipur14357930 Puducherry120061916 Himachal Pradesh110182510 Nagaland6733030 Chandigarh5234037 Arunachal Pradesh2871092 Mizoram2031430 Sikkim134710 Meghalaya113451
Nation Current Affairs 11 Nov 2016 Airfares to rise, Go ...

Airfares to rise, Govt imposes levy on airlines to fund flights to small cities

Published Nov 11, 2016, 2:41 pm IST
Updated Nov 11, 2016, 2:44 pm IST
The levy amount would be for an entire flight and price of each ticket could go up depending on the number of seats.
Representational image
 Representational image

New Delhi: Airfares are set to rise with the government deciding to levy up to Rs 8,500 per flight on major routes to fund the regional air connectivity scheme.

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 that particular flight.


Civil Aviation Secretary R N Choubey today said the levy would be up to Rs 8,500 per flight depending on distance.

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 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 here.


For UDAN, the government would be creating the Regional Connectivity Fund (RCF).

With the levy, the government estimates to have Rs 400 crore for RCF, Choubey said. "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," he 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.

RCF is to be funded by the Centre and respective state government participating in UDAN.

Location: India, Delhi, New Delhi