Regional Connectivity Scheme: Heres how much your flight tickets will cost now
The RCS route will cover distance between 200km to 800km.
The Civil Aviation Ministry on Friday announced a draft regional connectivity scheme, capping of air fares at Rs 2500 for one-hour flights that are connected to unserved and underserved airports.
Civil Aviation Minister, Ashok Gajapathi Raju, wrote in a tweet, "Today, we have given shape to the Hon'ble Prime Minister's Vision of Regional Air Connectivity in India #RCS #TransformingIndia #PMOIndia".
According to the new rules, RCS are required to include un-served airports i.e airports where there is no scheduled commercial flights and under-served airports i.e. airports which have seven or less scheduled commercial flights per week. The RCS route will cover distance between 200km to 800km.
Regional Connectivity via helicopters is capped at Rs 2500 for half an hour flight.
According to the media reports, the airfare caps will be implemented on half of the seats and passengers will get subsidised fare on first-come-first-serve basis.
In a statement to Economic Times, Aviation Secretary RN Choubey said that out of 13 seats in small aircraft, nine seats will be under subsidy and in 80 seater aircraft, 40 seats will be under subsidy. The fares of the seats which are not under subsidy will not be regulated by the ministry.
Further, as per The Hindu report, the regional connectivity fund will be financed by charging levy per departure to airlines on all domestic routes except remote and north-eastern States. Also, to support the RCS scheme, the central government will levy an excise duty of only 2% on Aviation Turbine Fuel (ATF) purchased at RCS airports for three years.
"#RCS Regional Conn. Fund (RCF) to be created for funding RCS through levy on certain flights. States to contribute 20% (10% for NE) to RCF", Raju tweeted.
"The service tax will be levied at only 10% of the taxable value of tickets for RCS seats for a period of one year. The operating Airline will be free to enter into code sharing arrangement with domestic and international airlines", civil aviation ministry said.
There are chances of airlines passing the charges and costs to the customers leading to the rise in airfare prices.
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