The government has imposed a levy of up to Rs 8,500 levy on flights on major routes to fund connectivity to smaller cities. The longer the flight, the higher is the levy.
For an aircraft carrying 180 passengers, it could translate into an extra fare of around Rs 50.
The extra levy is part of the government's ambitious regional connectivity scheme UDAN, aimed at jump-starting regional connectivity by imposing a fee on trunk route flights.
The government had on July 1 unveiled the draft scheme which fixed all-inclusive fares at Rs 2,500 for one-hour flights in its attempt to make flying affordable for the common man.
The scheme seeks to provide air services between unserved and under-served areas as well as extending viability gap funding (VGF) through a regional connectivity fund.
There are 394 unserved and 16 under-served airports.
Shares of InterGlobe Aviation (which operates IndiGo), Jet Airways and SpiceJet fell between 2 per cent to 3 per cent.
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