The Union Civil Aviation Ministry is considering doing away with airport and navigation charges for airlines operating to such destinations while imposing a cess of about Rs 50 on all domestic flyers to realise the cost. The government is striving to encourage air connectivity to small towns.
Union Civil Aviation Minister Ajit Singh said in London that the government is planning to stop charging airlines connecting small towns. Fees like airport charges, navigational charges and other such costs — which is nine per cent of the total cost of any airliner — will be waived and the Airports Authority of India (AAI) will bear it, the Minister said. To fund this, a cess of about Rs 50 will also be levied on all domestic flyers.
There are around 90 such Tier-II and Tier-III towns which have airports but have no air connectivity or very low air operations. The Ministry will require an annual fund of Rs 400 crore for giving such subsidy to the airlines for flying to these otherwise commercially-unviable destinations. If the airlines receive such concession, they will be immensely benefited, Singh said.
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