New Delhi, Oct 2: Government of India is planning to bring a new scheme following which it may fix price of flight tickets between Rs 2,000 to Rs 2,500.
The aviation ministry has been trying to match the air fares with rail fares in the country. However, the above mentioned scheme might be applicable only in small towns and cities.
Mahesh Sharma, the junior minister of aviation, was quoted as saying, "We have a 300-million-strong middle class population and most desire to fly at least once in their lifetime. It is possible if we make the fare in a bracket of Rs. 2500 for an hour-long flight."
"Our airport charges will be reduced, we will ask the states to reduce value added taxes (VAT) and other taxes on such flights. We will ask the airlines to take a fare cut," he added.
If approved, the new scheme will come into effect from April 2016. However, airlines officials refused to comment on the government's proposed plans.
It has been reported that all airlines operating in the country would be asked to bid for routes that connect small towns to cities.
Prices of flight tickets would be fixed between Rs 2,000 to Rs 2,500. Government of the country would pay the extra amount, i.e. the difference between actual cost per ticket and the fare.
However, the extra money, which the government will pay, will be collected from passengers on profitable routes. Passengers, who will fly in profitable routes, would be charged a 2 per cent cess.