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Regional connectivity levy to come into effect from September 1: DGCA

Aviation regulator DGCA has said the collection of levy to subsidise the regional connectivity scheme (RCS) will now come into effect from the next month and any amount already paid by airlines under this fund would be adjusted against their accounts. The Directorate General of Civil Aviation (DGCA) issued a notification revising the date to September 1. The government had started charging a fee – ranging from INR 7,500 to 8,500– from December 2016 in order to cross- subsidise flights to Tier II and Tier III cities under the RCS. The amount was revised to INR 5,000 in May this year.

The civil aviation ministry had earlier said it would collect a levy of INR 5,000 per departure from airlines operating on major domestic routes in order to fund the UDAN scheme. The move was opposed by some private airlines and they challenged it in the court. The notification adds that the amount already paid by the airlines will be adjusted against their account. As many as 128 routes were awarded to five airlines in the first round of bidding for RCS in March.