Wednesday, October 11, 2017

FIA withdraws lawsuit challenging Udan cess

New Delhi: Lobby group Federation of Indian Airlines (FIA) withdrew a lawsuit challenging the government’s decision to impose a cess to fund its regional connectivity scheme Udan.

FIA, which counts SpiceJet Ltd, InterGlobe Aviation Ltd-run IndiGo, Jet Airways (India) Ltd and GoAir as its members, had filed the lawsuit late last year.

“Everybody understands the importance of Udan and the first round of Udan has proved to be quite successful and we had several conversations with the government and we thought that it was in the best interest of the system that FIA take back the case,” SpiceJet chairman Ajay Singh said in an interview on the sidelines of the World Economic Forum in New Delhi on Friday.

Udan—or Ude Desh Ka Aam Nagrik, loosely translates as “let the common man fly”. Under the original plan, airlines would have had to pay Rs7,500 for every flight up to 1,000km, Rs8,000 for those between 1,000 and 1,500km and Rs8,500 above 1,500km. This would have brought in about Rs400 crore annually to the government which were to be ploughed back to airlines to fly to remote towns.
10/10/17 Klopa Robin/
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