Govt imposes up to Rs 8,500 levy per flight; airfares to rise


New Delhi, Nov 11 (PTI): Airfares are set to rise with the government deciding to levy up to Rs 8,500 per flight on major routes to fund the regional air connectivity scheme.

The levy amount would be for an entire flight and the price of each ticket could go up depending on the number of seats in that particular flight. Civil Aviation Secretary R N Choubey today said the levy would be up to Rs 8,500 per flight depending on distance.

The ambitious scheme -- UDAN (Ude Desh ka Aam Naagrik) -- seeks to connect small cities by air as well as make flying more affordable for the masses.

To provide viability gap funding for the flights operated under the regional connectivity scheme, the Ministry would impose a levy on every departure on major air routes such as the national capital, Mumbai, Chennai, Hyderabad, Bengaluru and Kolkata.

"The levy for an up to 1,000 kilometre length of scheduled flight will be Rs 7,500 per flight, Rs 8,000 for a 1,000 to 1,500 kilometre flight and Rs 8,500 for flights above 1,500 kilometre," Choubey said here.

For UDAN, the government would be creating the Regional Connectivity Fund (RCF).

With the levy, the government estimates to have Rs 400 crore for RCF, Choubey said. "In addition to this, another 20 per cent (funding) will come from state governments. We are roughly looking at around Rs 500 crore per year available in the kitty," he noted.

The move would push airfares slightly higher as airlines are expected to pass on the burden to fliers.

The funding is being provided since the fares of half of the seats operated in a particular flight under UDAN would be capped at Rs 2,500 for one-hour duration. This cap would be applicable for distance of 476-500 kilometres.

The limit of RCS airfare would vary from Rs 1,420 to Rs 3,500 for fixed-wing aircraft. For helicopters, half-an-hour ride under the scheme would cost Rs 2,500 and for over one- hour duration, the cap would be Rs 5,000.

RCF is to be funded by the Centre and respective state government participating in UDAN.

  

Top Stories

Comment on this article

  • SMR, Karkala

    Sun, Nov 13 2016

    The beginning of the third year of the Narendra Modi government rule is fast becoming a forgettable one for the NDA, at least on the Twitter. What nailed it today is the latest move by the government of increasing the prices of various fuels.

    Perhaps for the first time, petrol in India costs more than the superior jet fuel (ATF) used in aeroplanes, as the government has levied a record excise duty on the fuel used in two-wheelers and cars.

    Adding to the bad news for the consumers was a further 9.2 percent increase in the aviation turbine fuel and Rs 21 increase in that of non-subsidised LPG cylinders. This was announced early morning today.
    The increase in ATF prices is likely to have a cascading effect on the air tickets if airlines decide to pass on the hike to the consumers.
    Now PM Modi's government indirectly asking the air passenger to pay more even though price of ATF come down.

    In other hand foreign flag carriers will give stiff competition by offering low airfares to Indian passengers.

    1.What is the logic of fixing the Rs 8,500 levy?
    2.Does this fix levy covers the airport tax,passenger handling tax,passenger development tax,aviation turbine fuel tax etc?
    3.What is base fuel price of ATF is taken into account levying the price fare?
    4.If the ATF prices in International market comes down,how does passenger is going to benefit?
    5.Why only in India taxation on air ticket is more than the base price?

    Jai Hind

    DisAgree Agree [1] Reply Report Abuse

  • Shankar, Mangalore

    Sat, Nov 12 2016

    I am enjoying good national highways, feel safe with efficient military, enjoy faster air commute to other cities from mangalore. I am proud that rural India is getting gas connections, better roads, better transportation and better healthcare.
    business opportunities are on upwards trend.
    I do not mind paying little extra on my airfare!

    DisAgree [7] Agree [1] Reply Report Abuse

  • Praveen, Mangalore

    Sat, Nov 12 2016

    Voted for BJP ? now feel the heat from all angles.

    DisAgree [1] Agree [8] Reply Report Abuse

  • ibrahim, mangaluru

    Sat, Nov 12 2016

    Fuel prices less than half these days, while all the prices are getting higher...kachra..management

    DisAgree [1] Agree [9] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sat, Nov 12 2016

    Why should we pay for his International Holidays ...

    DisAgree [2] Agree [16] Reply Report Abuse

  • N.M, Mangalore

    Sat, Nov 12 2016

    This levy will impact the middle and upper middle class wh voted for feku.

    feku sarkar is BANGING the public and in return the voters with "senseless taxes" will BANG him in 2019.

    DisAgree [1] Agree [13] Reply Report Abuse

  • TRUE INDIAN , IXE

    Sat, Nov 12 2016

    NOW ALL FEEL PAPPU IS FAR BETTER THAN FEKU.

    DisAgree [1] Agree [18] Reply Report Abuse

  • Peter , Bangalore

    Fri, Nov 11 2016

    But who is having 8500 in cash today ?

    DisAgree Agree [9] Reply Report Abuse

  • Ramesh Babu, Mangalore

    Fri, Nov 11 2016

    Why not we do the same like Egypt protest at Tahrir square.

    DisAgree [2] Agree [42] Reply Report Abuse

  • Joseph F. Gonsalves, Bannur, Puttur / Mangalore

    Fri, Nov 11 2016

    Everyday everything is becoming costly.

    Reason to raise money for his own luxurious foreign tours.

    TODAY IN THE INTERNATIONAL MARKET CRUDE OIL PRICES PER BARREL 44$

    DisAgree [1] Agree [51] Reply Report Abuse

  • Langoolacharya, Belman/Wash DC

    Fri, Nov 11 2016

    Ambani and Adani are Modi's Damaads...along with Najeeb Jung....

    He wants to help them, when International crude price went up from $ 45 to $ 50, within hours Modi increased the Petrol/Diesel price...when they came down from $ 50 to $ 44...he is keeping quiet....Why???...

    ...JH...

    DisAgree Agree [54] Reply Report Abuse

  • TRUE INDIAN , IXE

    Fri, Nov 11 2016

    LOOK AT THE ECONOMY AFTER BANNING 500 AND 1000

    VERY WORST.

    DisAgree [3] Agree [47] Reply Report Abuse

  • D.Shetty, Mangalore / Bahrain

    Fri, Nov 11 2016

    I wonder if anyone has understood..it could have put in better way instead of taking negativity ..its per flight and not per ticket. so it may be hike of around 50 0r 30 rs...Media :)..if anyone have seen some improvement on Airindia express which i was calling DABBA , there is good changes and could be observed while booking ticket online..Govt is doing better for us so lets take it positive ..there are people for whom everything looks black even in day light..cannot help it.

    DisAgree [50] Agree [10] Reply Report Abuse

  • Thinker, Mlor

    Sat, Nov 12 2016

    Bhakth spotted

    DisAgree [1] Agree [12] Reply Report Abuse

  • John, Udupi

    Sat, Nov 12 2016

    D. Shetty, thanks for the clarification!. At least there are people like you who can understand english and help us understand in simple ways!. I was thinking that 8500 was to be paid at departure and again 8500 at destination. Totally relieved after your clarification!. Dont know what english our teachers taught us!!. Its another matter that I travel by bus and rarely by flight!. Thank you once again D Shetty. God bless you.

    DisAgree [2] Agree [9] Reply Report Abuse

  • ANIL, mumbai

    Sat, Nov 12 2016

    For congress take time 60years to Loot: FEKU BHAKTS
    BUT
    BJP LOOTING WITHIN 5 YEARSS: COMMON MAN

    DisAgree [1] Agree [17] Reply Report Abuse

  • Jacob Mendonsa, Bangalore

    Sat, Nov 12 2016

    D Shetty,
    U seems to be very good in calculations. Please tell us after Modi Government came into power how much he increased service tax, Swachh Bharat & Krishi Cess & how it effects a common man like me a retired senior citizens, having no additional income? Also explain how much tax U r paying in Bahrain Restaurants, how much income tax is deducted by your employers? How much property tax U R paying? Whether your employers r providing free airfares upto Mangalore & R U in any way effected with this increase?

    DisAgree [1] Agree [11] Reply Report Abuse

  • Langoolacharya, Belman/Wash DC

    Fri, Nov 11 2016

    Take money from middle class passengers and buy useless fighter planes from France and US....so Ambani can build these planes in India and make money...

    Modi should be educated pros and cons of buying totally useless military hardware...looks like Moilys gas scam with Ambani...now its time of Modis Defense scams with Anil Ambani...

    Both CONgress and BJPeee are curse/Shani for Indian people...

    ...JH...

    DisAgree [2] Agree [48] Reply Report Abuse

  • jude, belman

    Sat, Nov 12 2016

    First time I completely agree with you.

    DisAgree Agree [13] Reply Report Abuse

  • William , Mangalore

    Fri, Nov 11 2016

    Who is the sufferer of this continuous NAUTANKI

    DisAgree [3] Agree [47] Reply Report Abuse

  • John, Udupi

    Sat, Nov 12 2016

    69% voters!. Because now these people have to pay for the blunders of 31%!!!

    DisAgree Agree [12] Reply Report Abuse

  • Jayaram, Mangalore/Mumbai

    Fri, Nov 11 2016

    All these revenues will be pumped Nagpur or Gu..?

    DisAgree [3] Agree [55] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Fri, Nov 11 2016

    Now you know his true colors ...

    DisAgree [2] Agree [58] Reply Report Abuse

  • Aubb, Kuwait

    Sat, Nov 12 2016


    He had lost all his colors long long ago,

    All that is left looks like a bird without feathers !

    DisAgree Agree [10] Reply Report Abuse

  • Peter, Udupi

    Fri, Nov 11 2016

    Thank you MODIji. Indians will bear all these to afford your luxury life.

    DisAgree [3] Agree [62] Reply Report Abuse

  • TRUE INDIAN, IXE

    Fri, Nov 11 2016

    ENOUGH OF LOOTING MONEY FROM COMMON MAN.

    WE JUST ASKING TO STOP LOOTED MONEY FROM POTICIANS AND BIG SHOTS.

    HERE MODI IS LOOTING COMMON MAN.

    DisAgree [1] Agree [61] Reply Report Abuse


Leave a Comment

Title: Govt imposes up to Rs 8,500 levy per flight; airfares to rise



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.