Saturday, September 19, 2015

Modi government plans to cap airfares to make travel affordable for common man

India may witness a mobile phone like revolution in the skies, as the Narendra Modi government is planning to make air travel affordable for common man by putting a cap on airfares at Rs 2,000 or Rs 2,500 per passenger on short distance flights.

The government will bear the extra charge if the cost incurred by an airline exceeds the proposed limit on air tickets. The amount will be paid by levying a cess on national and international flights.
A proposal being weighed by the civil aviation ministry will permit carriers to bid for license to operate flights between many small towns and cities where the travel time is one hour. The proposal has already received in-principle approval from Prime Minister Narendra Modi.

India can emerge as the world's third-largest aviation market if the country enables its 300 million middle class people to travel by plane "at least once a year" by initiating the above measures, a senior civil aviation ministry official, told The Economic Times.
19/09/15 Besta Shankar/International Business Times
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