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Sops for regional carriers

 
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Aiel
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Joined: 19 Dec 2006
Posts: 927
Location: Bangalore

PostPosted: Wed Jan 31, 2007 3:59 pm    Post subject: Sops for regional carriers Reply with quote

Govt to dole out sops for small regional carriers
In a bid to improve air connectivity to the hinterland, the government is finalising a policy to promote airlines that operate only in a particular region.
Under the policy, a regional airline, flying aircraft with not more than 80 seats, will be exempted from navigation and airport charges. This concession will be available only for airlines that restrict their operations to one region rather than establishing a nation-wide network.
Civil aviation ministry has carved out four regions north, east, west and south for marking geographical limits, sticking to which will be mandatory for availing the exemption from airport charges. The government is also planning to extend concessional sales tax rate of 4% for all regional aircraft. Currently, the benefit is available only to turboprop aircraft and others have to bear high sales tax of up to 26% in some states.


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Nimish
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Joined: 16 Dec 2006
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Location: Bangalore, India

PostPosted: Wed Jan 31, 2007 7:09 pm    Post subject: Reply with quote

While it sounds good on the surface, I think I'm fundamentally opposed to the govt trying it's hand at "helping the country" through policy/taxation matters. Keep it simple and keep it transparent - that's all we really need. And once there's a simple/transparent policy in place (which is not true yet) don't keep tinkering with it.
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HAWK21M
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Location: Mumbai, INDIA

PostPosted: Thu Feb 01, 2007 10:48 am    Post subject: Reply with quote

What is the Current status of this Airline & what type are they Interested in.
I feel this Regional Airlines coverage would be benificial in the Long run provided the Smaller Airports are developed.

Would be interested who would start up covering the East.

regds
MEL
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