Hyderabad : With smaller cities set to lead the air traffic growth in the country, the Centre is planning to build nearly 200 low-cost airports in the next 20 years to expand connectivity to Tier-II and Tier-III cities, reports PTI.
According to G Ashok Kumar, Joint Secretary of Civil Aviation, the industry was facing multiple challenges including high ATF costs, VAT, high landing and other operational costs and falling tariffs.
The state governments are not reducing the VAT (Value Added Tax) and other rates on Aviation Turbine Fuel (ATF), he said while announcing the fourth edition of the international exhibition and conference on Civil Aviation—India Aviation 2014, will get underway at the Begumpet Airport here from March 12. “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% of the total air traffic, which is expected to rise to 45% in the next few years,” he said.
The five-day event, India Aviation 2014, jointly organised by the Ministry of Civil Aviation and FICCI, will be inaugurated by Union Civil Aviation Minister Ajit Singh and Andhra Pradesh Governor ESL Narasimhan.