India throws open airline routes to private sector

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Written by Linda Hohnholz

In a significant move to boost aviation and enhance air travel connectivity, the Uttar Pradesh government, the most populous and politically important state in India, has thrown open its aerial routes

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In a significant move to boost aviation and enhance air travel connectivity, the Uttar Pradesh government, the most populous and politically important state in India, has thrown open its aerial routes to the private sector.

The intrastate flights proposed under the scheme include Lucknow-Allahabad-Lucknow, Lucknow-Agra-Lucknow, Lucknow-Varanasi-Lucknow, Lucknow-Meerut-Lucknow, and Lucknow-Gorakhapr-Lucknow. Some other cities under the plan are Moradabad, Chitrakoot and Kushinagar.

Most of these places are popular tourist, pilgrim, and business destinations.

To make the program more enticing, among the incentives being given are a 4 percent VAT on ATF if the take-off mass of the plane is less than 40,000 kilograms, and landing and parking fees on state-owned fees will be exempted. Another important feature is that the state government will underwrite the purchase of 30 percent of the seats or 6 seats per flight, whichever is less.

The policy will be in force for 3 years to start with. Applications by the operators can be made until July 10, 2014.

WHAT TO TAKE AWAY FROM THIS ARTICLE:

  • To make the program more enticing, among the incentives being given are a 4 percent VAT on ATF if the take-off mass of the plane is less than 40,000 kilograms, and landing and parking fees on state-owned fees will be exempted.
  • In a significant move to boost aviation and enhance air travel connectivity, the Uttar Pradesh government, the most populous and politically important state in India, has thrown open its aerial routes to the private sector.
  • Another important feature is that the state government will underwrite the purchase of 30 percent of the seats or 6 seats per flight, whichever is less.

About the author

Avatar of Linda Hohnholz

Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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