Connecting remote routes
What about the waiver of passenger fee of 77 per ticketinsmallercities?Does that sound practical too?
We that a little bit of income should come to these airports. And since this is a small amount it should be continued as there will be some incidental expenses occurring at the airport, so a source of revenue is welcome.
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it What are the challenges you are facing while dealing with the state governments?
State governments are willing partners in supporting regional connectivity. Many states have already agreed. They should look after the security aspects of these airports. They should not burden the airport authority with property tax. They should provide water and power infrastructure to the airport. Also, they should charge concessional VAT rate of four per cent on ATF. Right now it is ranging from 4-30 per cent. According to the general order of government of India, this concession is available to aircrafts up to 40 ton all over India. But even aircrafts that weigh beyond 40 ton and provide regional connectivity should get this concession. Any incentive to soften up the directives of RDG?
We are considering whether RDG can be replaced with direct subsidy scheme. Today, airlines are forced to operate on loss making routes and the loss is offset by their profit making routes. But the profit made on busy flight routes can be collected upfront (by the government) and used in subsiding regional loss making routes.