Friday, June 29, 2018

Kannur airport backs out of UDAN

Thiruvananthapuram: The Kannur international airport, gearing up for commercial flight operations in September, has decided to opt out of the bandwagon of regional flights under the Union government’s Ude Desh ka Aam Naagrik (UDAN).

A decision to this effect was taken at a board meeting of Kannur International Airport Limited (KIAL) chaired by Chief Minister Pinarayi Vijayan at the Secretariat here on Thursday. The decision to withdraw from the UDAN scheme would be communicated officially to the Civil Aviation Ministry, official sources told The Hindu.
The decision to back out comes after signing the agreement in January between the Centre, State government and Airports Authority of India for inter and intra-State services from the State’s fourth international airport coming up near Mattannur.

The KIAL board gave its nod after it came to the conclusion that the three-year exclusive monopoly in the seven sectors under the UDAN scheme and Viability Gap Funding (VGF) of the State will seriously hamper domestic flight operations and that revenue generation will be hit.

KIAL, the operator of the airport, will not get any revenue from the domestic flights operated under the UDAN scheme as it cannot impose landing and parking, and terminal navigation landing charges on the airline in addition to discounts on route navigation facility.
28/06/18 S. Anil Radhakrishnan/The Hindu

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