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Thursday 30 June 2016

Cap on regional air fares welcome, but Rs 2,500 isn't low: Tourism industry

New Delhi: The maximum, all-inclusive air fare of Rs 2,500 proposed in the new aviation policy for travel up to one hour or around 600 km is welcome for promoting regional connectivity. But it isn't really low, going by existing tariff of carriers, analysts feel.

For a person who intends to travel, for example, on July 15 from NEW DELHI to Lucknow -- which is around 550 km away and appears within the coverage -- the cheapest all-inclusive fare that shows up is Rs 1,653. And this, not for a budget carrier, but for a full-service one like Air India.


And how does this add up? A base fare of Rs 1,150, a passenger service fee of Rs 150, service tax of Rs 65, airline fuel surcharge of Rs 6 and a user development fee of Rs 282. That is, a total levy and surcharge of Rs 503.

In comparison, an all-inclusive executive class fare in Lucknow Swarna Shatabdi Express train is Rs 1,850, while an air conditioned II-Class fare on New Delhi-Lucknow Airconditioned Superfast Express is Rs 1,140.
To Read the News in Full 16/06/16 IANS/Economic Times
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