Incentivise air travel, new links will boost growth
8 years, 8 months ago

Incentivise air travel, new links will boost growth

Deccan Chronicle  

Air India recently made the headlines by offering last-minute unsold seats at the price of AC rail tickets. But if it makes regular air travellers who are time flexible wait till the last minute to book tickets, it could squeeze revenues further. Air India, a full-service airline unlike some private carriers with hidden costs for baggage, seat allocation and food, should be encouraged to go further and explore all commercial options for expanding the air travel pie. States earlier saw air travel as a cash cow and levied VAT at penal rates of up to 30 per cent. But now several states most affected by poor connectivity wisely responded to the Centre’s efforts to de-demonise air travel.

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