India to set up 200 low-cost airports
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India has drawn a plan to set up around 200 low-cost airports across the country.
These airports will be developed in the next two decades to expand the air connectivity of tier-II and tier-III cities, Press Trust of India (PTI) reported. The setting up of low cost airports would help to manage the growing passenger rush, civil aviation department sources said.
“The idea is to expand/develop low cost airports to meet the demand for air travel. The non-metro airports presently account for only about 30 per cent of the total air traffic, which is expected to rise to 45 per cent in the next few years,” Joint Secretary of Civil Aviation, G Ashok Kumar said.
He said that the industry is facing multiple challenges including high ATF costs, VAT, high landing and other operational costs and falling tariffs, he said. The state governments are not reducing the VAT (Value Added Tax) and other rates on Aviation Turbine Fuel (ATF), the official added.
Kumar was in Hyderabad to announce the fourth edition of the International Exhibition and Conference on Civil Aviation, India Aviation 2014. The five-day event started yesterday is jointly organised by the Ministry of Civil Aviation, Government of India and the Federation of Indian Chambers of Commerce and Industry (FICCI).
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