Prime Minister Narendra Modi is set to launch today the maiden flight under the government's ambitious UDAN plan to provide connectivity to far and remote areas of the country. The Shimla-Delhi flight will be operated by Alliance Air, the regional arm of Air India. Under the UDAN or 'Ude Desh ka Aam Naagrik' scheme, fares have been capped at Rs. 2,500 for one hour flight. The Civil Aviation Ministry has already awarded 128 routes connecting 70 airports to five airlines under the UDAN scheme: Air Alliance Air, SpiceJet, Air Deccan, Air Odisha and Turbo Megha. On each flight, 50 per cent of the seats would have a cap of Rs. 2,500 per seat/hour. These flights would connect airports spread across over 20 states and union territories.
Under the UDAN scheme, the government will extend subsidy in the form of viability gap funding to the operators flying on these routes. Apart from various incentives, the operators of such flights would be extended viability gap funding - for which money is partly raised through a levy of on flights operating in major routes like Delhi and Mumbai. The viability gap funding would be in place for three years for the airlines concerned from the date of starting operations in a particular UDAN route. Other benefits include zero airport charges for the operators and three-year exclusivity on the routes.
27/04/17 NDTV
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Under the UDAN scheme, the government will extend subsidy in the form of viability gap funding to the operators flying on these routes. Apart from various incentives, the operators of such flights would be extended viability gap funding - for which money is partly raised through a levy of on flights operating in major routes like Delhi and Mumbai. The viability gap funding would be in place for three years for the airlines concerned from the date of starting operations in a particular UDAN route. Other benefits include zero airport charges for the operators and three-year exclusivity on the routes.
27/04/17 NDTV
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