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The Goa government has unveiled an airline incentive scheme with an annual outlay of INR 2 crore to attract new flights and strengthen air connectivity, aiming to support tourism growth in the state. Under the policy, airlines introducing new routes or additional flights to Goa will receive financial incentives, with carriers earning INR 2 lakh for each new flight service launched. In addition, the state has reduced the value-added tax on aviation turbine fuel to 15 per cent from a higher rate, with the government bearing the difference to lower operating costs for airlines. The incentive scheme also complements infrastructure efforts such as the upcoming cruise terminal at Mormugao, expected to enhance passenger traffic.
The Goa government has finalised an airline incentive scheme worth INR 2 crore annually to improve air connectivity and bolster tourism, Chief Minister Pramod Sawant announced during a legislative assembly session. Advertisement
Under the new policy, airlines that launch new routes or add flight frequencies to Goa will be eligible for financial incentives. Each new flight service introduced under the scheme will earn an airline INR 2 lakh, providing a direct economic incentive to expand services to and from Goa.
To make air travel more attractive for carriers, the state has also revised the value-added tax (VAT) on aviation turbine fuel to 15 per cent, lower than the previous rate. The government will absorb the difference, effectively lowering fuel costs for airlines operating in the region.
Goa's tourism sector is heavily dependent on air connectivity, and the incentive scheme is intended to encourage more direct flights from domestic and international destinations. Sawant highlighted that infrastructure developments, including the upcoming cruise terminal at Mormugao expected to be operational later this year, are expected to further drive passenger traffic through Goa's airports.
The policy builds on recent expansions in aviation connectivity, with new international routes already operational and regional services under the central government's UDAN scheme, including flights by carriers such as Fly91 from Mopa's Manohar International Airport.
With tourism being a key economic driver for the state, the incentive scheme aims to enhance accessibility, support airlines commercial viability and stimulate growth in tourism-linked economic activity across Goa.
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