Goa Unveils Airline Incentives to Boost Connectivity

Under the route-based incentive scheme, airlines launching new routes or adding flight frequencies to Goa will receive financial support. Each new flight will be eligible for an incentive of Rs 0.2 million, while an airline operating five additional flights will receive Rs 1 million, Pramod Sawant told the legislative assembly.

To further ease operating costs, the state has reduced the effective levy on aviation turbine fuel by fixing value added tax at 15 per cent, lower than the standard 18 per cent, with the government absorbing the difference.

Calling the measure critical for a tourism-dependent economy, Sawant said the incentive framework was significant for a small state like Goa and underlined the need to operate both airports to support tourism growth. He added that the upcoming cruise terminal at Mormugao, expected to become operational later this year, is likely to further boost passenger traffic, with spillover benefits for Dabolim Airport.

Between March and December 2024, Goa recorded 1,970 flights across its two airports, with passenger arrivals at 46,174 and departures at 46,525. The Chief Minister reiterated that Dabolim airport will continue operations and said new international routes linking Goa with Uzbekistan, Poland, Russia and the UK have already commenced.

Regional carrier Fly91 currently operates 72 flights from Manohar International Airport, with three additional routes planned under the Centre’s UDAN scheme.

The incentive framework signals Goa’s intent to actively support airline expansion and tourism-led growth, while balancing operations across its two airports amid ongoing political and commercial debate.