Tripura demands upper cap on airfare in Agartala sector, government unhappy with airlines, BA

Despite offering a substantial tax cut on aviation turbine fuel (ATF) in Tripura, aviation companies operating in the sector have not passed on the benefits to travelers for the past three years, which has displeased the state government.

In a letter to Union Civil Aviation Minister Kinjarapu Rammohan Naidu, Tripura Transport Minister Sushanta Chowdhury requested on Saturday to develop a mechanism to cap airfare on the Agartala-Kolkata and Agartala-Guwahati routes, considering the communication bottleneck and lack of alternatives for the state.

As in previous years, aviation companies have significantly raised airfares on these routes leading up to the Durga Puja celebration scheduled to begin in just two weeks. Chowdhury proposed setting an upper cap on airfares for these routes and also urged for the Kailashahar airport to be equipped with 17–19-seater aircraft in a separate letter.

Chowdhury mentioned that airfares for flights between Agartala and Kolkata currently range from INR 10,000 to INR 12,000 for a mere 327 km of aerial distance. With the upcoming festival season, there are concerns that these prices may escalate further, adding to the financial burden on travelers.

Referring to recent discussions in the Tripura assembly regarding the unreasonable airfares, the minister highlighted that despite facing financial constraints, the state government has reduced VAT on ATF from 16% to just 1% since November 2021 to support the aviation sector in the state and expects reasonable airfares on the Agartala-Guwahati and Agartala-Kolkata routes.

“However, instead of passing on the benefit to travelers on the Agartala-Kolkata and Agartala-Guwahati routes, aviation companies are taking advantage of this financial relief by expanding their services to additional routes, such as from Kolkata to Chennai, Bangalore, Hyderabad, and other cities. This has led to resentment among the people of Tripura as passengers are not receiving the benefits of reasonable airfares or improved service quality,” he emphasized, and added, “Airlines are utilizing the tax cut to maximize their profits, neglecting the benefits for travelers.”

He urged the Union Ministry of Civil Aviation to consider implementing a cap on the highest airfare for the Agartala-Kolkata and Agartala-Guwahati routes to alleviate the financial burden on passengers from Tripura and other Northeastern states.

Chowdhury also requested the Ministry of Civil Aviation to commence operations of 17 or 19-seater aircraft by granting LoA to M/s Alliance Air and M/s Flybig Airlines from Kailashahar Airport as per the UDAN 4.2 bidding process, as routes connecting Kailashahar to Kolkata and Agartala were awarded to M/s Alliance Air and M/s Flybig respectively to operate small aircraft.