How Goa's New ₹2 Crore Airline Incentive Will Boost Air Connectivity

The Goa airline incentive scheme is now final. The Goa government set aside an annual outlay of ₹2 crore for the program. This new policy aims to boost air connectivity and support the state's vital tourism sector. Chief Minister Pramod Sawant announced the details to the legislative assembly.

Financial Incentives for Airlines

The scheme offers direct financial aid to carriers. Airlines introducing new flight routes or adding flight frequencies will be eligible.

Key Details of the Incentive

• Each new flight to Goa will receive an incentive of ₹2 lakh.
• An airline adding five new flights will receive ₹10 lakh.
• The goal is to make Goa a more attractive destination for air carriers.

This measure is a significant push for the aviation sector in the small state. The government is serious about enhancing both domestic and international air links.

Aviation Fuel Tax Reduction

In addition to the direct subsidy, the state reduced the cost of aviation turbine fuel (ATF). The Value Added Tax (VAT) on ATF was lowered from 18% to 15%. The Goa government will absorb this 3% differential to ease operating costs.

Lower fuel costs are a major factor for airlines when planning new routes. This aviation fuel tax relief is a powerful tool to attract more traffic. It makes refuelling in Goa more economical for carriers.

Impact on Airports and Tourism

The policy supports operations at both of Goa’s key airports. These are Dabolim Airport (Vasco) and the newer Manohar International Airport (Mopa). The Chief Minister confirmed that Dabolim Airport will continue to operate.

Between March 2024 and December 2024, the two airports handled 1,970 flights. The incentive aims to significantly increase this number. New international routes to countries like Uzbekistan, Poland, Russia, and the UK have already begun.

Broader Infrastructure Push

Goa tourism growth is also supported by other infrastructure projects. The upcoming cruise terminal at Mormugao is a key part of this strategy. It is expected to become operational later this year. This new terminal will further drive passenger traffic to the state.

This combined strategy addresses a key challenge for the tourism-dependent economy. Enhancing air connectivity is critical for sustaining and growing tourist arrivals. The incentive framework signals the Goa government's intent to actively support airline expansion. This move is expected to benefit major domestic and international airlines operating in the Indian market.

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