Thursday, June 28, 2018

Foreign airlines to get subsidy under the govt's Udan scheme

New Delhi: Foreign carriers such as Singapore International Airlines (SIA), Thai Airways and Malaysian Airlines would be entitled for subsidy from India if they are selected to operate cheaper flights between India and Asean nations under the international UDAN scheme.

The Centre has launched a regional connectivity scheme (RCS) named UDAN to help common man in smaller towns to fly. It provides a viability gap support to airlines for making these flights cheaper. Buoyed by its success, it now plans a similar scheme for connecting Indian cities with those in Asean block.

Both domestic and international carriers, designated by India and Asean nations, can participate in the scheme subject to the provisions under the bilateral air service agreements (ASAs). On Asean routes, the government has proposed to provide the financial support for one year and for limited number of seats.

As per a civil aviation ministry note, the selected airlines for international UDAN would have to operate a minimum of three  and a maximum of 7 flights per week to be eligible for the financial support. The aircraft operated on these routes would have at least 50 seats.

“Monetary support, capped to a specific number of seats per aircraft, will be provided to selected airlines. Monetary support will be in the form of viability gap support per seat,” it said.
28/06/18 Asian Age
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