Economy
What Does The Proposed National Aviation Policy Say
RDG was introduced in 1994 to provide air connectivity to J&K, NE, island territories, tier-2 and tier-3 cities, by way of internal cross-subsidy by airlines, using their profits on the trunk routes (12 in number). RDG has succeeded in creating connectivity to remote locations. Capacity actually deployed on Cat II and III is in excess of the RDG threshold, highlighting the business potential in these regions.
…would like the concessions to be extended to aircraft with 120 seats…. Price cap cannot be a long-term solution and it will not incentivise airlines to perform better.
In case the cost of made-in-India aircraft and components work out to be higher than those supplied from their original sources, the government will consider an incentive package to nullify the cost differential.
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