Monday, October 24, 2016

Higher subsidy for airlines connecting two regional airports

The Centre will provide higher a subsidy to airlines that operate flights between two regional airports under the regional connectivity scheme.

It will also allow airlines to transfer its rights or contract to get the subsidy from the government and fly on regional routes to another airline operating a similar type of aircraft, according to the regional connectivity scheme document.

The subsidy amount given to airlines that operate between two unserved or underserved airports will be 10 per cent higher than the sum offered to airlines that connect only one regional airport. There are 16 airports that have had no flights in the past one year and another 399 airports or airstrips that have not seen flight operations for more than three years.

Under the scheme, also known as UDAN, the Centre will provide a three-year subsidy to fund the losses of airlines to enable them to offer airfares at Rs.2,500 for an hour’s flight on half the seats. The subsidy amount for airlines connecting to one regional airport will vary between Rs.2,350 and Rs.5,100 per seat depending upon the distance covered between two destinations.
24/10/16 The Hindu