Goa Government Announces ₹2 Crore Airline Incentive Scheme to Boost Air Connectivity

The Goa government has finalised an airline incentive policy aimed at improving domestic and international air connectivity, as part of broader efforts to sustain tourism inflows and aviation-linked economic activity in the state, as per Times of India report. 

Route-Based Incentives and Fuel Cost Support 

Under the scheme, airlines operating new routes or adding flight frequencies to Goa will receive financial incentives. “Each new flight to Goa will receive an incentive of Rs 2 lakh. If an airline brings in five flights, it will receive Rs 10 lakh,” Chief Minister Pramod Sawant told the legislative assembly. 

In addition, the state has reduced the effective cost of aviation turbine fuel by levying a 15% VAT, lower than the standard 18%, with the government absorbing the difference to ease operating costs for carriers. 

Tourism and Infrastructure Push 

Calling the measure critical for a tourism-dependent economy, Sawant said, “This airline incentive is a big incentive for a small state like Goa. Goa govt is serious about this issue. To enhance tourism, Goa definitely needs both the airports.” 

He added that the upcoming cruise terminal at Mormugao, expected to begin operations later this year, is likely to further lift passenger traffic. “With Goa’s cruise terminal at Mormugao expected to be operational later this year, people will automatically book tickets from Dabolim,” he said. 

Traffic Trends and Network Expansion 

Between March and December 2024, Goa recorded 1,970 flights across its 2 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 at Mopa, with three additional routes planned under the Centre’s UDAN scheme. 

Read More: Goa Tourist Arrivals Reach All Time High of 1.08 Crore In 2025! 

Conclusion 

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

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