A reduction in levy is seen as government’s eorts to bring domestic airlines on board its UDAN scheme. Srirammore-inIn a relief to passengers flying on major domestic routes, the Civil Aviation Ministry has decided to significantly reduce the levy on air tickets imposed to fund the Centre’s new regional connectivity scheme UDAN. A reduction in levy is also seen as government’s efforts to bring domestic airlines on board its UDAN scheme as most domestic airlines refused to charge a levy on air tickets. Only AirAsia and Air India had imposed a regional connectivity scheme surcharge on its tickets so far. The Centre will provide subsidy to fund the losses incurred by airlines through a regional connectivity fund.

Source: The Hindu May 12, 2017 15:44 UTC