Bangalore: The Union government is looking to increase air connectivity by implementation of various measures like slashing of VAT on Aviation Turbine Fuel (ATF) as well as making state governments as major stakeholders to promote connectivity in the sector.
Profitability in the civil aviation sector has been hit due to high taxes on ATF, which accounts for almost 40 per cent of operations. Improving air connectivity has also been one of the mandates given to Union Minister for Civil Aviation, Pusapati Ashok Gajapathi Raju by Prime Minister Narendra Modi.
According to reports, the ministry has identified 87 regional ‘incentive destinations’ and made it mandatory for scheduled airlines to mount capacity which is at least equal to the capacity deployed on trunk routes by October 2015, agencies reported.
Scheduled carriers would have to deploy at least 6 per cent of their capacity on trunk routes, normally shorter duration flights to remote areas.
There are at least five-six new airlines awaiting final clearances to join the list of scheduled operators in India. Tata-Singapore airlines venture Vistara, Air Pegasus and Turbo Aviation among others are at different levels of approvals currently.
01/09/14 New Indian Express
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Profitability in the civil aviation sector has been hit due to high taxes on ATF, which accounts for almost 40 per cent of operations. Improving air connectivity has also been one of the mandates given to Union Minister for Civil Aviation, Pusapati Ashok Gajapathi Raju by Prime Minister Narendra Modi.
According to reports, the ministry has identified 87 regional ‘incentive destinations’ and made it mandatory for scheduled airlines to mount capacity which is at least equal to the capacity deployed on trunk routes by October 2015, agencies reported.
Scheduled carriers would have to deploy at least 6 per cent of their capacity on trunk routes, normally shorter duration flights to remote areas.
There are at least five-six new airlines awaiting final clearances to join the list of scheduled operators in India. Tata-Singapore airlines venture Vistara, Air Pegasus and Turbo Aviation among others are at different levels of approvals currently.
01/09/14 New Indian Express
