According to reports, the government has announced a levy to fund its regional connectivity scheme. The decision will lead to a spike in airfares.
Reports also have the Civil Aviation Secretary saying that a levy between Rs 7,500 and Rs 8,500 will be imposed on flights along major routes in order to pump more money into the scheme.
Funds from the levy are reportedly going to a corpus which will subsidise flyers in the smaller towns and cities. The government also hopes to gain Rs 500 crore from the levy for the first twelve months.
There will be a levy of Rs 7,500 for flights less than 1000 kilometres, Rs 8,000 for those between 1,000 and 1,500 kilometres and Rs 8,500 for those above 1,500 kilometers.
The per-ticket cost of this is expected to short of Rs 100.
