Aiming to promote greater air connectivity in remote areas, the government proposes to build more low-cost airports across the country, identifying the low-cost business model in domestic aviation as a 'key trend'.
A 'key trend' in the business model of domestic operations by Indian carriers was the "rapid shift" towards the low-cost carrier model, civil aviation minister Ajit Singh told the Parliamentary Consultative Committee attached to the civil aviation ministry on Monday.
The priority areas of his ministry included providing greater connectivity to smaller and remote parts of the country and development of low-cost airports, he was quoted as saying in an official release. During the discussion that followed, MPs too sought improving connectivity to smaller towns by increasing number of flights and setting up airports there.
"The members of the committee also voiced serious concern over increasing air fares. Apart from five major airports already operationalised under the public-private-partnership mode, government has given in principle approval for setting up of 15 new greenfield airports, including those in Goa, Navi Mumbai and Kannur," he said.
The priority areas also included reduction of value-added tax on jet fuel and bringing it under the ambit of the Petroleum and Natural Gas Regulatory Board Act, besides setting up aviation regulatory body Civil Aviation Authority and a separate Civil Aviation Security Force.
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