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Wednesday, 25 June 2014

Lowering ATF, better connectivity on Aviation Min's agenda

Aviation Minister Ashok Gajapathi Raju met Prime Minister Narendra Modi today and raised the point of the need for greater regional air connectivity. This is for the first time that the Civil Aviation Minister is officially meeting the PM. Some of the critical things that he is highlighting is the need for greater regional air connectivity. Infact the whole idea behind it is to come up with airports in some of the smaller towns, some of the smaller cities and most importantly make it viable for airlines to fly into these places.

What we also understand from sources is that one of the items that is likely to be flagged by the Aviation Minister to the Prime Minister today is how to incentivise airline. We may see development of some sort of viability gap fund – the civil aviation ministry has been thinking about this idea whereby which they will impose a nominal cess on some of the larger metropolitan airports like the one’s in Delhi, Kolkata, Mumbai and use that cess to sort of subsidise the flying for airlines in some of these places.
Read news in full 21/06/14 Ronojoy Banerjee/CNBC-TV18Moneycontrol.com
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