Defunct Salem airport hopes of flights relaunch within six month

State Government in touch with Union Civil Aviation Ministry

The likelihood of revival of Salem Airport, lying idle for many years, got brightened with Tamil Nadu Cabinet deciding to support the Centre’s Udan scheme by reducing the VAT on aviation turbine fuel for the proposed air services between Salem and Chennai under the Regional Connectivity Scheme (RCS).

The cabinet, which met under the leadership of Chief Minister Edappadi K. Palaniswami recently, decided to reduce the VAT on aviation turbine fuel from 24 % to one % for the proposed air services.

Mr. Palaniswami, during an informal chat with reporters at his native Edappadi Assembly constituency, had stated that the state government has taken all effective initiative for reviving the Salem airport within six months and is in touch with the Union Civil Aviation Ministry.

The Ministry of Civil Aviation had recently included the defunct Salem airport in the RCS, following the introduction of the new Civil Aviation Policy last year. The Udan scheme envisaged the operation of flight service from the defunct airports in the two-tier cities with various forms of assistance from both the Centre and the state government.

Under the scheme, 50 % of the passengers can travel at a maximum rate of Rs. 2,500, which is an all inclusive airfare, while the rest will be charged as per market rates. The airlines will be getting financial support (viability gap funding) from the Centre and the state government for the subsidised 50 % of the seats.

The state government is expected to sign Memorandum of Understanding (MoU) with the Civil Aviation Ministry for the Udan scheme. The state government has to give consent to meet out 20 % of the viability gap fund (VGF) to meet the loss of flight operators whenever they are unable to make break-even recovery.

Under the other conditions of the RCS, the state government has to provide adequate needed space, power and water supply at reduced cost, deploy police force for the security checks, fire and rescue services personnel for the safety of the premises and flights free of charge.

The signing of the MoU will enable the introduction of the flight services without any delay.

Air Odisha Aviation Private Limited has already been accorded permission to fly in the Chennai – Puducherry – Salem – Bengaluru route after the first round of bidding.

Various traders and industrial organisations have commended the state government for taking a decision to reduce the VAT on the aviation fuel at the cabinet meeting.

K. Mariappan, president, Indian Chamber of Commerce and Industry (Salem), thanked Mr. Palaniswami for the initiative. This will prove a boost for the western belt’s economic and tourism development.

He also appealed to the state government to take steps for acquiring adequate land for undertaking the expansion of the airport by reaching a settlement with the landowners on compensation. Currently, the flights could land at the Salem airport only in the day time and he pleaded for the introduction of night landing facility too.