Domestic flyers to fund regional connectivity

DELHI: From December 1, domestic flying is going to get marginally more expensive, by anywhere in the range of Rs 60-100 per ticket.

The aviation ministry Friday announced a levy on flights between big cities and metros which will be imposed from a yet to be declared date to fund its ambitious aerial regional connectivity scheme (RCS), reports The Times of India.

Flights of up to 1,000 km; 1,000-15,500 km and beyond 1,500 km will attract a levy of Rs 7,500; Rs 8,000 and Rs 8,500.

This charge will be levied on airlines, which in turn will pass it on to customers. This will, say airline sources, translate into anywhere between Rs 60 and Rs 100 per passenger, per flight.

The aviation ministry hopes to collect about Rs 500 crore annually through this levy and use it to provide viability gap funding (VGF) to operators to offer RCS flights with a fare cap of Rs 2,500 per hour, or for covering 500 km.

For instance, the fare cap of Rs 2,500 is for flights covering a distance of about 500 km in an hour for which the VGF offered is Rs 3,790 per flyer.


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