Air fares set to go up

air-fareAirfares 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 RN Choubey 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.

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, y said

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