DGCA increases regional connectivity levy on airlines to Rs 6,500 per departure

The levy on scheduled flights being operated within India to fund the Regional Air Connectivity Fund has been increased to Rs 6,500 per departure of an eligible flight from the existing rate of Rs 6,000, starting May 1.

The decision was taken after a joint review by the Ministry of Civil Aviation (MoCA) with the airlines represented by the Federation of Indian Airlines (FIA).

The levy is charged on each departure of flights on aircraft having MTOW (maximum take-off weight) above 40 tonnes, except for routes in Himachal Pradesh, Uttarakhand and Ladakh, Jammu and Kashmir, Andaman and Nicobar Islands, and Lakshadweep. 

The MoCA launched the Regional Connectivity Scheme (RCS) UDAN (Ude Desh ka Aam Nagrik) in October 2016 to enhance regional air connectivity from unserved and underserved airports in the country and make air travel affordable to the masses.

UDAN is a market-driven scheme. Interested airlines, based on their assessment of demand on particular routes, submit their proposals at the time of bidding under UDAN. With a view to attracting airlines to operate flights to underserved and unserved airports, support is provided in the form of viability gap funding (VGF) and other concessions by the airport operators, the central government, and state governments.

An airport that is included in the awarded routes of UDAN and requires upgradation or development for the commencement of UDAN operations, is developed under the 'Revival of unserved and underserved airports' scheme.

On the basis of five rounds of bidding, 76 airports, including 2 water aerodromes and 9 helipads in different regions of the country, have been developed and operationalised by RCS flights. The RCS scheme also mandates Regional Connectivity Fund allocation to regions in a manner that promotes balanced growth and regional connectivity in different parts of the country.

A total of 519 routes have been operationalised since the inception of the RCS-UDAN Scheme. The routes include 53 tourism routes and 48 helicopter routes connecting hilly regions of the nation. More than 13.38 million passengers have benefited from the UDAN flights. As many as 256,000 lakh flights have operated under the UDAN scheme so far.