Friday, March 20, 2015

Govt mulls corpus fund for aviation sector in line with USOF for telecom

New Delhi: The government is mulling creating a corpus fund for the aviation sector in line with the Universal Service Obligation Fund (USOF) for the telecom sector.
A top civil aviation ministry official told FE that they are considering a cess on travellers on metro routes.
Airlines too may have to pay if they do not fly to smaller towns, as per the new route dispersal guidelines, that would make a certain portion of their domestic operations  mandatory for flying to smaller towns.
According to new norms outlined in the revised aviation policy for promoting air connectivity for regional and remote areas of the country, domestic airlines seeking permits to fly overseas anyway, would be required to earn that right by providing connectivity to underserved and unserved areas (smaller towns or Tier -2 and 3).
“You have many new airlines, which may not be willing to fly to smaller towns, as these places do not make a business case for them. They can buy seats or contribute  towards aviation corpus fund for not flying to these underserved areas of the country,” said an official.
20/03/15 Sanjay Singh/Financial Express
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