The Uttar Pradesh government Tuesday hiked the subsidy provided to chartered flight operators by Rs.5 per kilometre, a move that is expected to reduce intra-state fares significantly, officials said Tuesday.
The move assumes significance as it would provide subisidy to the debt-ridden chartered flight service players and also make the state aviation industry attractive to tourists.
According to a statement issued by the state government, the current subsidy would be equivalent in terms of fare for nine passengers per flight.
The state said that the payment for extra seats would be applicable as an incentive for flights which do not fly to capacity and have vacant seats.
The announcement is expected to bring cheer to the private air carriers who were waiting in the wings after the Akhilesh Yadav government had identified some key routes for development as tourist destinations for chartered flights.
Late last year, the state government had also announced an incentive package for the fliers.
Then Jan 23, 2015, it sought proposals from private carriers on these routes.
Elaborating on the scheme, UP Secretary and Director General of Tourism Amrit Abhijaat told IANS that destinations like Agra, Lucknow, Allahabad, Meerut, Moradabad and Kushinagar would be developed for chartered flight tourist services.
Private air carriers were initially circumspect about the prospects of operating half vacant flights on the intra-state routes and had suggested that instead of daily flights, their numbers should be reduced to once or twice a week.
