27.10.14

Of flying intra-state in UP....

Tourists looking to fly to Agra from Lucknow, Allahabad and Varanasi will soon be able to avail of cheaper airfares, thanks to the UP government. In a policy decision effected on Tuesday , the Uttar Pradesh government announced a reduction in Value Added Tax (VAT) on aviation fuel to promote air travel to and from Agra to Lucknow, Varanasi and Allahabad.Against 22% VAT, airlines will now have to pay only 4% on aviation fuel.
According to estimates, of the 18 companies that entered the fray , the North East Flight Company will begin operations in early November. The state government has assured the companies a guaranteed 30% booking of seats in each flight for bureaucrats and politicians in order to make the services viable.
The Akhilesh Yadav-led Samajwadi Party government is also believed to be pursuing seriously a new air terminal project in Agra and has already announced increased compensation to farmers whose land is to be acquired for the new facility at Dhanuali village.
President of the Federation of Travel Agents of India, Rajiv Tiwari said “the profile of tourism in Agra is all set to change as air travel will become affordable. The airport has enough space for parking of Boeings.“

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