The civil aviation ministry is considering a proposal to levy about `40 to `50 as an air-travel cess on every passenger catching a flight anywhere in the country in order to subsidise flight operations of airlines to smaller towns.
The ministry is considering a proposal to establish an area essential services fund (AESF) and money for the fund to the tune of about `400 crores could be raised through such a levy on passengers in order to boost regional connectivity to smaller towns. A meeting was held in the ministry on Tuesday on the matter. Civil aviation minister Ajit Singh is understood to have expressed some concerns over any move to impose a levy on passengers, but well-placed ministry sources said there may be no other option but to impose such a levy. Air-fares therefore may go up further marginally.
Incidentally, the ministry is also considering another proposal to levy about `5 per passenger for another cess after proposed creation of a Civil Aviation Authority (CAA) that will replace current aviation regulator DGCA.
Sources said that at Tuesday’s meeting on the issue of proposed creation of an AESF, there was a discussion on whether the fund can be created by lowering airport charges alone.
22/05/13 Sridhar Kumaraswami/Asian Age
