Tuesday, November 29, 2016

Fancy Flights for Aam Aadmi

When Narendra Modi stormed to power in New Delhi, he had promised various measures to fulfill the life of public in general which were a fancy for them till date. Affordable flights for the lower middle class and connecting tier-2 and tier-3 cities to the aviation radar was one of such major measures.

Therefore, providing regional air connectivity is one of the important policy goals for the Narendra Modi government. Such services deliver a host of benefits by fulfilling latent consumer demand for convenient travel, making businesses and trade more efficient, showcasing India’s tourism potential, enabling fast medical service and promoting national integration at the same time. Moreover, building connections to tier-2 and tier-3 cities also generates powerful network effects with many regional passengers transferring on to the national aviation network between tier-1cities. This move is expected to bring fancy for aviation among the public in general a reality as majority of the Aam Aadmi lives in tier-2 and tier-3 cities.

The Udan (Ude Desh ka Aam Naagrik) program is designed to jump start the regional aviation market by improving the profitability of under-developed regional routes. Udan is a market-based policy intervention that builds on similar programs in the US, Canada and Australia. It is also consistent with universal service approaches established for other network-based services such as railways and telecom.
28/11/16 The Day After

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