Air taxi services in the state set to fly from October next

Air taxi services in the state set to fly from October next as government is on the verge of finalisation of the companies.

In the first phase, lucknow-Allahabad, lucknow-Agra, lucknow-Meerut and lucknow-Varanasi would be connected through air.  Altogether, 18 companies have come forward in the expression of interest to set up Air taxis in the state. Prominent companies who have shown their interest are Jet Serve Aviation, Indus Airways, Aryan, Northeast Shuttles, CD Aviation and Fairwinds Aviation. 

State Tourism Director-General (DG) Amrit Abhijat told reporters that six aviation companies had made presentations before the tourism officials. He said that as per the government proposal 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 those 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 last 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. 

Abhijat said the government also want 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.