As the deadline for enlisting operators for intra-state airline services in Uttar Pradesh (UP) ended last week, three airline companies have approached the State Tourism Department with interest to commence operations as per guidelines of the new Intra-state Aviation Policy announced by the government. The State Tourism Department has identified 12 routes to be covered through intra-state air operations.
According to Dr Shashank Vikram, Managing Director & Special Secretary, UP Tourism, the routes, which have been identified, include Agra, Lucknow, Varanasi, Meerut, Jhansi, and Khushinagar, among others. “These operators have to fulfill the DGCA (Directorate General of Civil Aviation) guidelines to start operations. We are hopeful of completing the process in the next one month,” he said. As far as infrastructure at these destinations are concerned, Dr Vikram said that UP has the highest number of airstrips in India.
Terming the intra-state aviation policy an open-sky policy, Dr Vikram said that various incentives are offered to operators who come forward to start operations. The state government has already announced reduction in VAT (Value Added Tax) on Air Turbine Fuel (ATF) from 21 per cent to four per cent. This is currently available for both scheduled and non-scheduled airlines, he added. Under the Intra-state Aviation Policy, the government would underwrite nine seats or 50 per cent, whichever is lower, to make operations economically viable. The government will offer Rs 20 per km for each empty seat under Viability Gap Funding (VGF), Dr Vikram added.
27/01/15 P Krishna Kumar/TravelBizMonitor
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According to Dr Shashank Vikram, Managing Director & Special Secretary, UP Tourism, the routes, which have been identified, include Agra, Lucknow, Varanasi, Meerut, Jhansi, and Khushinagar, among others. “These operators have to fulfill the DGCA (Directorate General of Civil Aviation) guidelines to start operations. We are hopeful of completing the process in the next one month,” he said. As far as infrastructure at these destinations are concerned, Dr Vikram said that UP has the highest number of airstrips in India.
Terming the intra-state aviation policy an open-sky policy, Dr Vikram said that various incentives are offered to operators who come forward to start operations. The state government has already announced reduction in VAT (Value Added Tax) on Air Turbine Fuel (ATF) from 21 per cent to four per cent. This is currently available for both scheduled and non-scheduled airlines, he added. Under the Intra-state Aviation Policy, the government would underwrite nine seats or 50 per cent, whichever is lower, to make operations economically viable. The government will offer Rs 20 per km for each empty seat under Viability Gap Funding (VGF), Dr Vikram added.
27/01/15 P Krishna Kumar/TravelBizMonitor
