Decoding your air ticket after the new civil aviation policy

The new Civil Aviation Policy which was passed by the Union Government on Wednesday was created with the intention of taking 'flying to the masses' and making it affordable, convenient and cheap. The policy aims to achieve a target of 30 crore domestic ticketing by 2022 and 50 crore by 2027, from the current 7 crore tickets.

One of the ways it is expected to achieve this is by waiving or reducing certain taxes through Regional Connectivity Scheme (RCS) to promote air travel between tier-2 and 3 cities. These taxes include landing, parking, Terminal Navigation Landing Charges (TNLC), Route Navigation and Facilitation Charges (RNFC) and Service Tax which will be either waived or reduced in regional flights.

This the policy says will come into effect in the second quarter of 2016-17 (June-August).

Here is how much you could be saving on a ticket from a tier-2 or 3 city:

(Example of a ticket from Lucknow airport to Jaipur)

Before implementation of new Civil Aviation Policy:

Base Fare: Rs 5,040

Passenger Service Fee: Rs 150

ATF Charge: Rs 522

User Development Fee: Rs 451

TNLC: Rs 10.01

Landing Charges: Rs 377.33

Parking Charges: Rs 6.1

RNFC: Rs 38.5 

Service Tax: 311

Total: Rs 6,905.94

After implementation of new Civil Aviation Policy:

Base Fare: Rs 5,040

Passenger Service Fee: Rs 150

ATF Charge: Rs 522

User Development Fee: Rs 451

RNFC: Rs 8.3 (at Rs 1,000)

Service Tax (on 10% taxable amount): Rs 75.6

Total: Rs 6,246.9

Total savings from taxes and charges waived off: Rs 659.04