Source: Ministry of Civil Aviation
India’s aviation sector undergoing dynamic transformation in the recent past. The need for improving regional air connectivity by starting air service at smaller cities has been finally addressed. The new Ude Desh Ki Aam Naagrik (UDAN) Scheme by Government of India is trying to solve the issue of last mile air connectivity by starting operations at 43 under-served airports by September 2017 in a first phase. The Civil Aviation Ministry awarded regional air routes to five operators (Alliance Air, Air Odisha, TruJet, Spice Jet, Air Deccan) who won the bid.
India’s aviation sector undergoing dynamic transformation in the recent past. The need for improving regional air connectivity by starting air service at smaller cities has been finally addressed. The new Ude Desh Ki Aam Naagrik (UDAN) Scheme by Government of India is trying to solve the issue of last mile air connectivity by starting operations at 43 under-served airports by September 2017 in a first phase. The Civil Aviation Ministry awarded regional air routes to five operators (Alliance Air, Air Odisha, TruJet, Spice Jet, Air Deccan) who won the bid.
The Government is providing ‘viability
gap funding’ under the scheme so that air fare for a one-hour journey is capped
at Rs. 2,500 per passenger for 50% seats in each flight. The air fare subsidy is
shared by Central and State governments. Also, range of tax concessions would
be provided to support the scheme. Subsidy would remain for next 3 years while
UDAN scheme is for next 10 years. The UDAN scheme is aimed at strengthening air
connectivity network of Tier 2 and 3 cities so that large proportion population
can benefit. On March 5, Central Government approved a Rs. 4,500-crore plan for
the development and up-gradation of 50 under-served or unserved airports and
airstrips in India.
Total 128 routes across India were
awarded among 5 airlines. Air Odisha tops as it got 50 routes to operate
followed by Air Deccan (34), TruJet (18), Alliance Air (15) and Spice Jet
(11). The time holds lot of excitement for aviation sector as dream project of
the Prime Minister Narendra Modi is all set to change the rules of the game.
You can also visit Top 10 Most Connected Domestic Airports in India: February 2017
As I read the blog I felt a tug on the heartstrings. it exhibits how much effort has been put into this.
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