The government is mulling to impose a new cess on flyers to help increase connectivity to smaller towns. An Essential Services Fund could be created with the money collected through the new tax that would help provide subsidy to airlines operating to smaller cities and areas like the north-east.
This, among other proposals, would be taken up for discussion soon when top officials of the Union Aviation Ministry meet to discuss issues regarding connectivity that have been lingering on for years.
Many in the aviation ministry believe that current rules regarding regional connectivity that require airlines to operate a certain percentage of flights to places like the north-east, hasnÂ’t been of much help and the system should be replaced with one where the government provides subsidies to airlines to operate on loss-making routes. Other proposals to be discussed include setting up of no-frills airports.
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