The Union law ministry has cleared the aviation ministry’s proposal to place a new levy on existing flights to subsidise new regional flights.
The approval has been granted. Now the process of finalising the exact amount will be started.
One of the plans being worked out by the civil aviation ministry is to impose a fee of Rs.7,000-8000 per flight to create an annual corpus of Rs.500 crore.
The new civil aviation policy seeks to connect unconnected towns by capping fares for these routes and helping airlines with funding.
The regional connectivity model will be based on viability gap funding, under which 80% of the cost will be borne by the state government and the rest by the Centre.