Air taxi services likely to start from Oct in UP

18 firms express interest; sops include fuel tax waiver & seat fare guarantee

Don't want to miss the best from Business Standard?

Faster travel would soon be possible within Uttar Pradesh thanks to air taxi services, likely to start in October.

In the first phase, Lucknow-Allahabad, Lucknow-Agra, Lucknow-Meerut and Lucknow-Varanasi would be connected through air.

Responding to a Uttar Pradesh tourism advertisement soliciting expression of interest to set up air taxi services, about 18 companies — including Jet Serve Aviation, Indus Airways, Aryan, Northeast Shuttles, CD Aviation and Fairwinds Aviation — have submitted proposals, said Uttar Pradesh Tourism Director-General (DG) Amrit Abhijat. Six aviation companies had made presentations before Abhijat.

The state government would underwrite 30 per cent of the airlines’ seats in case these remain vacant. The government will also exempt unscheduled airlines from value-added tax (VAT) on fuel. These airlines will attract VAT at the rate of four per cent, vis-à-vis the now applicable 21 per cent. However, VAT exemption would be given to only airlines flying in the state. Aircraft weighing up to 40 tonnes would be eligible for the VAT waiver. The airlines would be able to take off and land for free from state airstrips.

An Open Sky Policy was ratified by the UP cabinet on June 3 and a government order was issued on June 16. Agra, Varanasi, Gorakhpur, Meerut, Allahabad, Lucknow, Chitrakoot, Moradabad and Kushinagar were proposed to be connected through the indigenous air services. The government also wanted to connect the Buddhist tourism circuit via air. This would envisage connecting Kushinagar via Lucknow or Gorakhpur. In July last year, the cabinet had granted in-principle approval to air services and UP State Tourism Development Corporation was made the nodal agency.

FLYING HIGH IN UP

• Lucknow-Allahabad, Lucknow-Agra, Lucknow-Meerut and Lucknow-Varanasi circuits to be connected
  

 

18 companies, including Jet Serve Aviation, Indus Airways, Aryan, Northeast Shuttles, CD Aviation, Fairwinds Aviation, have submitted proposals
 

To encourage air taxis, airline companies to be compensated for 30 per cent vacant seats
 

Non-scheduled airlines exempted from paying value-added tax on fuel
 

VAT exemption only for domestic airlines flying in the state
 

Aircraft weighing up to 40 tonnes would be eligible for VAT waiver