Friday, January 25, 2013

MoCA seeks subsidy for airlines flying to remote locations


Ministry of Civil Aviation has demanded some funds to provide subsidies to airlines that fly to remote locations in this Budget itself, reports CNBC-TV18's Sumit Jha.
This is a part of ministry's drive to improve connectivity to remote locations. Ministry sources say that there is reluctance on part of some airlines to fly to these locations. That is because of historically low yield which ultimately decides the profitability of these airlines.
They have struggled to cover their costs. So, with some sort of subsidy to these airlines ministry hopes that more flights and frequency would improve to these locations. More airlines will queue up to fly to these locations.
25/01/13 CNBC-TV18/SME Monitor
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