Tripura demands upper cap on airfare in Agartala sector
AVIATION & AIRPORTS

Tripura demands upper cap on airfare in Agartala sector

Despite offering a huge tax cut on aviation turbine fuel (ATF) by Tripura, aviation companies operating in the sector didn’t reciprocate the benefit to the travelers for the last three years, which made the state government unhappy. In a letter to the Union Civil Aviation Minister Kinjarapu Rammohan Naidu, Tripura Transport Minister Sushanta Chowdhury on Saturday requested to devise a mechanism to cap airfare in the Agartala-Kolkata and Agartala-Guwahati routes considering the communication bottleneck and shortage of alternatives for the state.
Like in previous years, aviation companies hike the airfare on the routes exorbitantly ahead of the Durga puja celebration scheduled to begin in barely two weeks. Chowdhury proposed an upper cap on airfare in the routes and demanded to make Kailashahar airport with 17–19-seater aircraft in a separate letter.
Chowdhury wrote that airfares for flights between Agartala and Kolkata currently range between INR 10,000 and INR 12,000 for only 327 km of aerial distance. And, with the upcoming festival season, there are apprehensions that these prices may increase further, exacerbating the financial burden on travelers.
Referring to the recent discussions in the Tripura assembly about the irrational airfare, the minister pointed out that the state government, despite its financial constraints has reduced the VAT on ATF from 16 %to only 1 %since November 2021 to promote the aviation sector in the state and expecting favourable airfare on Agartala-Guwahati, Agartala- Kolkata routes.
“But the aviation companies are capitalising on this financial break by expanding their services to additional routes, such as from Kolkata to Chennai, Bangalore, Hyderabad, and other cities rather than benefiting travelers on the Agartala-Kolkata and Agartala-Guwahati routes.
Although the state government has reduced the tax burden on aviation companies, passengers are unable to get facilities of reasonable airfare or upgraded service quality, which is resulting in resentment among people of the Tripura, he underlined, and added, “The airlines are leveraging the tax cut to optimise their gains and increase profitability, leaving aside the benefits for travelers.”
He requested the Union Ministry of Civil Aviation to consider implementing an upper cap on the highest airfare for the Agartala-Kolkata and Agartala-Guwahati routes to ease the financial burden on passengers from Tripura and other Northeastern states. Chowdhury requested the Ministry of Civil Aviation to start the operation of 17 or 19-seater aircraft by providing LoA to M/s Alliance Air and M/s Flybig Airlines from Kailashahar Airport as 4.2 bidding of UDAN, routes connecting Kailashahar to Kolkata and Agartala were awarded to M/s Alliance Air and M/s Flybig respectively to operate small aircraft.
                                                                                            

The 14th RAHSTA Expo, part of the India Construction Festival, will be held on October 9 and 10, 2024, at the Jio Convention Centre in Mumbai. For more details, visit: https://rahstaexpo.com

Despite offering a huge tax cut on aviation turbine fuel (ATF) by Tripura, aviation companies operating in the sector didn’t reciprocate the benefit to the travelers for the last three years, which made the state government unhappy. In a letter to the Union Civil Aviation Minister Kinjarapu Rammohan Naidu, Tripura Transport Minister Sushanta Chowdhury on Saturday requested to devise a mechanism to cap airfare in the Agartala-Kolkata and Agartala-Guwahati routes considering the communication bottleneck and shortage of alternatives for the state.Like in previous years, aviation companies hike the airfare on the routes exorbitantly ahead of the Durga puja celebration scheduled to begin in barely two weeks. Chowdhury proposed an upper cap on airfare in the routes and demanded to make Kailashahar airport with 17–19-seater aircraft in a separate letter.Chowdhury wrote that airfares for flights between Agartala and Kolkata currently range between INR 10,000 and INR 12,000 for only 327 km of aerial distance. And, with the upcoming festival season, there are apprehensions that these prices may increase further, exacerbating the financial burden on travelers.Referring to the recent discussions in the Tripura assembly about the irrational airfare, the minister pointed out that the state government, despite its financial constraints has reduced the VAT on ATF from 16 %to only 1 %since November 2021 to promote the aviation sector in the state and expecting favourable airfare on Agartala-Guwahati, Agartala- Kolkata routes.“But the aviation companies are capitalising on this financial break by expanding their services to additional routes, such as from Kolkata to Chennai, Bangalore, Hyderabad, and other cities rather than benefiting travelers on the Agartala-Kolkata and Agartala-Guwahati routes.Although the state government has reduced the tax burden on aviation companies, passengers are unable to get facilities of reasonable airfare or upgraded service quality, which is resulting in resentment among people of the Tripura, he underlined, and added, “The airlines are leveraging the tax cut to optimise their gains and increase profitability, leaving aside the benefits for travelers.”He requested the Union Ministry of Civil Aviation to consider implementing an upper cap on the highest airfare for the Agartala-Kolkata and Agartala-Guwahati routes to ease the financial burden on passengers from Tripura and other Northeastern states. Chowdhury requested the Ministry of Civil Aviation to start the operation of 17 or 19-seater aircraft by providing LoA to M/s Alliance Air and M/s Flybig Airlines from Kailashahar Airport as 4.2 bidding of UDAN, routes connecting Kailashahar to Kolkata and Agartala were awarded to M/s Alliance Air and M/s Flybig respectively to operate small aircraft.                                                                                            

Next Story
Infrastructure Urban

Delhi CM approves incentive scheme to boost scrapping of old vehicles

The Delhi government has announced a new incentive scheme that offers a 10-20% tax rebate for buyers of new vehicles who choose to scrap their old ones. Chief Minister Atishi approved the initiative, which aims to phase out older, more polluting vehicles from the roads and promote the adoption of cleaner alternatives. According to a statement released by the government, the tax rebate will vary depending on the type of vehicle purchased: a 20% rebate will be provided for non-commercial CNG and petrol vehicles, 15% for commercial CNG and petrol vehicles, and 10% for diesel vehicles. The schem..

Next Story
Infrastructure Urban

Maharashtra to make Rs 1.6 trillion Green Integrated Data Centre Parks

The Maharashtra government has approved the establishment of Green Integrated Data Centre Parks, with a projected investment of Rs 1.6 trillion. The decision was made during a recent cabinet meeting chaired by Chief Minister Eknath Shinde, making Maharashtra the first Indian state to launch a special policy for Green Integrated Data Centre Parks. The initiative is expected to solidify Maharashtra’s position as a leading hub for the data centre industry, attracting multinational corporations and global tech leaders. In addition to enhancing the state’s digital infrastructure, the project ..

Next Story
Infrastructure Transport

GOI asks CBRI to help on airport safety after Delhi airport collapse

Following the partial collapse of a canopy at Terminal 1 of Delhi’s Indira Gandhi International Airport in June, the Indian government has sought the expertise of the Central Building Research Institute (CBRI) to advise airport operators nationwide on structural safety. The Roorkee-based institute has been tasked with ensuring the structural integrity of airport infrastructure and guiding operators to prevent similar incidents in the future. The decision to engage CBRI comes in the wake of multiple structural issues, including similar canopy collapses at Jabalpur and Rajkot airports in Jun..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000