New Delhi: With a view to keep airfares unchanged, the National Democratic Alliance government may reduce the earlier planned charge of Rs.8,000 per flight from airlines to fund the regional connectivity scheme (RCS).
The government has come up with RCS to connect remote locations of the country by utilising existing airstrips and develop new ones to put these locations on the aviation grid.
A sum of Rs.500 crore has already been earmarked for RCS in the current financial year. Additionally, Rs.8,000 per flight is to be charged to airlines plying on various routes to build the viability gap funding (VGF) corpus, which is an important component of the RCS draft policy.
The maximum VGF, which will fund the gap between an airline’s operations and expected revenues on RCS routes, will be limited to nine seats for a 12-seater aircraft and maximum of 40-seats for larger aircraft, as per the draft RCS policy.
However, the government is now concerned that levying the charge may add Rs.40-50 per passenger travelling on the current domestic air routes.
16/10/16 Sanjay Singh/VCCircle
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The government has come up with RCS to connect remote locations of the country by utilising existing airstrips and develop new ones to put these locations on the aviation grid.
A sum of Rs.500 crore has already been earmarked for RCS in the current financial year. Additionally, Rs.8,000 per flight is to be charged to airlines plying on various routes to build the viability gap funding (VGF) corpus, which is an important component of the RCS draft policy.
The maximum VGF, which will fund the gap between an airline’s operations and expected revenues on RCS routes, will be limited to nine seats for a 12-seater aircraft and maximum of 40-seats for larger aircraft, as per the draft RCS policy.
However, the government is now concerned that levying the charge may add Rs.40-50 per passenger travelling on the current domestic air routes.
16/10/16 Sanjay Singh/VCCircle
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