AP Govt to launch airline named after Amaravathi

The Andhra Pradesh government is planning to launch an airline, named after Amaravathi, once the state capital is developed.

An official in the N Chandrababu Naidu-led government told PTI that the initiative is aimed at bringing global exposure to the upcoming city and also give a boost to the aviation sector in the state, adding that the airline is likely to be named after the state capital.

"When Amaravathi is developed, the government may like to have its own international airport and airline depending upon the requirement at that particular time," he said.

Currently, there are five commercial airports in Andhra Pradesh -- Visakhapatnam, Tirupati, Vijayawada, Rajamundry and Kadapa. Besides, six greenfield airports -- Bhogapuram, Dagadarthi, Orvakallu, Kuppam, Tadepallegudam and Ongole -- are being developed through public-private partnership (PPP).

According to the official, even though the government has reduced VAT on jet fuel to 1 per cent, the losses incurred on account of this have been offset by the surge in air traffic in the state.

"Prior to the implementation of the AP Aviation Policy 2015, there was a four-per cent VAT on aviation turbine fuel. Later, it was reduced to one per cent. Due to multiplication in the number of flights after the VAT reduction, the revenue loss to the state has been offset," he said.

According to official data, air passenger traffic in the state is expected to grow to 3.6 million by the end of this fiscal, compared to 2.7 million passengers in the previous financial year.

On the other hand, aircraft movement in all the airports in the state is expected to grow to 44,437 by the end of the fiscal.