New Delhi: To support its strategy to connect smaller cities to the nation, the government has stated new charges that will have to be funded by the airlines.
The longer the flight, the higher the fee. The government has decided three levels:
—Rs. 7,500 for flights cover 1,000 km
—Rs. 8,000 for flights covering up to 1, 500 km
—Rs. 8,500 for distances above that.
The government assumes to receive approx 400 crores per year from the fresh charges.
When the government declared its “Regional Connectivity Scheme“, it promised that flights that are an hour long would cost just Rs. 2,500.
To promote these low-cost flights in small cities, it said a minute duty would be added on existing routes, in order to improve earnings for the scheme.
The UDAN scheme (an acronym for Ude Desh Ka Aam Naagrik or “helping the average Indian fly”) is to be launched in January.
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The government has also recognised airports that are either good or under-utilised, even though they have infrastructures related to terminal building and air traffic control towers. The government has also pledged to spend Rs. 4,000 crore ($598 million) to reopen 50 unused airports within four years.