What steps has the Indian government taken to combat airfare challenges in the aviation industry
The Indian government has made a recent announcement regarding airfare in the aviation industry.
- The government has placed a cap on airfares between 13th May to 24th August and the fares are categorized into Seven groups depending upon duration of the flight route.
- They have also introduced a subsidy for airlines, under the UDAN (Ude Desh Ka Aam Nagrik) scheme, which aims to make flying affordable for the common man.
- The aviation ministry has allowed Indian carriers to operate flights up to 80% of their pre-Covid capacity, up from 70% previously.
- They have also reduced the excise duty on aviation turbine fuel from 14% to 11%.
- Additionally, the government has provided a variety of tax relief measures, including a reduction in Goods and Services Tax (GST) on maintenance, repair and overhaul (MRO) services for aircraft.
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a year ago