New Delhi: The proposed cap of Rs 2,500 per air ticket on regional routes will be applicable only for carriers availing viability gap funding from the Civil Aviation Ministry, which expects to put up the final aviation policy for Cabinet approval in December.
Providing more clarity on the contours of regional connectivity scheme under the revised draft aviation policy, Civil Aviation Secretary R N Choubey on Friday said there would be no compulsion on airlines to cap fares on regional routes.
As part of efforts to boost regional connectivity, the government has proposed a 2% cess on all air tickets and the proceeds would be utilised towards Viability Gap Funding (VGF).
"Capping (of air fares in regional routes) comes, which is justified, only when a carrier avails VGF from the government," he told reporters.
06/11/15 PTI/Daily News & Analysis
To Read the News in full at Source, Click the Headline
Providing more clarity on the contours of regional connectivity scheme under the revised draft aviation policy, Civil Aviation Secretary R N Choubey on Friday said there would be no compulsion on airlines to cap fares on regional routes.
As part of efforts to boost regional connectivity, the government has proposed a 2% cess on all air tickets and the proceeds would be utilised towards Viability Gap Funding (VGF).
"Capping (of air fares in regional routes) comes, which is justified, only when a carrier avails VGF from the government," he told reporters.
06/11/15 PTI/Daily News & Analysis
