Levy of taxes on large Airlines

By | July 19, 2016

Levy of taxes on large Airlines

As per the National Civil Aviation Policy, 2016, to ensure uniformity and level playing field across various airport operators, future tariffs at all airports will be calculated on a ‘hybrid till’ basis, unless otherwise specified for any project being bid out in future. It is also provided that 30% of non-aeronautical revenue will be used to cross-subsidise aeronautical charges. In order to operationalize Regional Connectivity Scheme (RCS), the National Civil Aviation Policy, 2016 provides that a Regional Community Fund will be created through levy per departure on all domestic routes, other than CatII/IIA routes, RCS routes and small aircraft below 80 seats irrespective of routes. Selection of cities under RCS is to be ‘demand driven’, depending on firm demand from airline operators and where State Government agrees to provide various concession envisaged in the Policy.

This information was given by Minster of State for Civil Aviation, Shri Jayant Sinha in a written reply to a question in the Rajya Sabha today.

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