Thursday, March 30, 2017

Udan scheme: SpiceJet, Alliance Air win bids to fly to remote locations

SpiceJet and Alliance Air were among the five airline companies that won bids to fly to far-flung locations at subsidised rates under the first phase of the government's Udan Regional Connectivity Scheme on Thursday. Others to receive the license included regional airlines Air Deccan, Turbo Megha and Air Odisha.

The government also approved a total of 43 airports that will be a part of the scheme on 128 routes.

The government had received a total of 43 applications from scheduled and non scheduled operators to fly regional routes.

Aviation Minister Ashok Gajapathi Raju, addressing the media, said the total seats on these routes will be around 13 lakhs. He added that the scheme will become active in the next 4-6 months.

Under Udan (Ude Desh ka Aam Nagrik) scheme, airlines will receive a viability gap funding in which 80 percent of the subsidy will be provided by the state government and the remaining by the Centre.

Raju said for instance, that 50 percent of the seats under the RCS for a one hour flight will be available under Rs 2,500.
30/03/17 Deepak Kumar/Money Control