(Photo for representational purpose)The Regional Connectivity Scheme (RCS) for providing air services to small towns is headed for an air pocket as no scheduled carrier, barring Air Asia (India), has started depositing the RCS levy with the Airports Authority of India (AAI). The Federation of India Airlines, which represents scheduled carriers like IndiGo, GoAir, SpiceJet and Jet Airways, has challenged imposition of the levy in the Delhi High Court. “The RCS levy claimed by the AAI has gone up to around Rs 150 crore by March, from Rs 93 crore till February 15, whereas we had collected only Rs 1.15 crore till that date. While Air India is expected to pay, other airlines have gone to court against the levy,” the official said. Airlines including TruJet, SpiceJet, Air Deccan, Air Odisha and Air India subsidiary Alliance Air, won bids to operate on the routes that will connect 70 airports, including 31 unserved and 12 under-served ones under the scheme.

Source: Indian Express April 09, 2017 22:18 UTC