Aviation
Air Tickets at Rs 2500: Indian Government’s Next Big Idea
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If you are complaining about high air fares ahead of the festive season, this should interest you. The aviation ministry is examining if air fares can be capped at Rs 2500, matching rail fares.
“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,” said Mahesh Sharma, junior minister for aviation.
But here’s the catch: These cheap flights will operate only in small towns and cities. There are as many 31 airports, mostly in small towns and cities, where airlines have either never flown or have stopped flying because of poor passenger loads.
The government plans to revive these destinations by starting low fare flights. “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,” said Mr Sharma.
If approved, the policy will be implemented from April next year and here’s how it will work: Airlines will be asked to bid for routes that connect small towns to cities. Fares will then be fixed between Rs 2000 and Rs 2,500.
The difference between actual cost per ticket and the fare will be paid by the government. Money for this will come from passengers on profitable routes, who will be charged a 2 per cent cess. In technical language, it is called viability gap funding.
Airlines didn’t want to comment without seeing the fine print. But some aviation experts said they feel it would be tough for the policy to take off in the absence of fuel efficient small aircraft. “By definition, regional service to me means using a 50-seater plane,” said Kapil Kaul, who heads the Indian office of Australian consultancy, Centre for Asia Pacfic Aviation.
The government’s plan, he said, sounds more like starting a commuter service and planes for such an experiment are not easily available. “When you study the commuter operations from 9 to 30 seats, it mostly has outdated technologies… 70s technology or 80s technologies,” he added.
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Aviation
Boeing, Antonov to Collaborate on Defense Projects
![Boeing, Antonov to Collaborate on Defense Projects](https://jetlinemarvel.net/wp-content/uploads/2024/07/Volga-Dnepr_Antonov_An-124-100M-150_and_Cubana_Ilyushin_Il-96-300.jpg)
– MOU represents Boeing’s commitment to work with Ukrainian industry
– Includes exploring opportunities for collaborating on in-country support of Unmanned Aerial Systems
A Memorandum of Understanding was signed today by Boeing and Antonov Company to investigate potential collaboration on defense-related projects.
“We’re happy to keep collaborating with the Antonov Company to help Ukraine’s economic development and expansion,” stated Ted Colbert, CEO and president of Boeing Defence, Space, & Security.
Airbus and the Antonov An-225: The Best Partnership:Click here
“This agreement demonstrates our ongoing efforts to find more opportunities to work with Ukrainian industry, which was underscored by our signing of the Ukrainian Defence Industry Compact earlier this year.”
The areas of potential collaboration identified in the agreement consist of training, logistical support and overhaul services for tactical Unmanned Aerial Systems utilized by the Ukrainian Armed Forces, which includes the ScanEagle. In addition, the companies will also explore opportunities for Antonov to provide engineering support to Boeing.
The six largest cargo aircraft ever built in the aviation industry:Click here
“A strong, innovative, and efficient defense industry is key to sustainable economic development and national security, and we are extremely excited to collaborate with Boeing,” said Ievhen Gavrylov, CEO of Antonov Company.
This agreement brings a whole new level of opportunity to implement the latest and most effective solutions – in addition to the possibility of future projects with Boeing in the aerospace and defense industry.”
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