New Delhi: Air India has started levying a fee of ₹70 per passenger on
most of the domestic routes that it operates. This will lead to a
marginal increase in fares on these flights.
Air India started imposing the levy on January 16 this year, which will go to fund the government’s Regional Connectivity Scheme (RCS). The new levy is applicable on routes other than the the North-East region, Jammu & Kashmir, Andaman & Nicobar Islands, and Lakshadweep.
Other airlines are yet to impose the regional connectivity scheme (RCS) levy, with a SpiceJet official telling BusinessLine that it had not started imposing it.
The money Air India collects will be deposited in an escrow account operated by the Airports Authority of India and will be used for subsidising flights to the interior parts of the country under UDAN. The Centre is imposing a levy of ₹7,500 per flight between cities which are up to 1,000 km apart. For distances of 1,000-1,500 km, the levy will be ₹8,000 per flight, and for above 1,500 km, ₹8,500 per flight. The levy is based on the total seats in the aircraft and not the number of seats that an airline manages to fill.
The scheme, which will be in operation for a period of 10 years, envisages providing connectivity to un-served and under-served regions of the country through revival of existing air-strips and airports.
To Read the News in Full 24/01/17 Ashwini Phadnis/Business Line
Air India started imposing the levy on January 16 this year, which will go to fund the government’s Regional Connectivity Scheme (RCS). The new levy is applicable on routes other than the the North-East region, Jammu & Kashmir, Andaman & Nicobar Islands, and Lakshadweep.
Other airlines are yet to impose the regional connectivity scheme (RCS) levy, with a SpiceJet official telling BusinessLine that it had not started imposing it.
The money Air India collects will be deposited in an escrow account operated by the Airports Authority of India and will be used for subsidising flights to the interior parts of the country under UDAN. The Centre is imposing a levy of ₹7,500 per flight between cities which are up to 1,000 km apart. For distances of 1,000-1,500 km, the levy will be ₹8,000 per flight, and for above 1,500 km, ₹8,500 per flight. The levy is based on the total seats in the aircraft and not the number of seats that an airline manages to fill.
The scheme, which will be in operation for a period of 10 years, envisages providing connectivity to un-served and under-served regions of the country through revival of existing air-strips and airports.
To Read the News in Full 24/01/17 Ashwini Phadnis/Business Line
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