Tuesday, July 24, 2018

Indian gov't to expand UDAN as Kannur backs out of scheme

The Indian government is working on expanding the Regional Connectivity Scheme (Ude Desh ka Aam Nagrik - UDAN) to cover popular tourist destinations in the country, Minister of State for Civil Aviation Jayant Sinha has told parliament.

According to the Business Standard, the revamp of the government-run programme was launched at the request of the Ministry of Tourism.

UDAN currently covers under- and unserved airports, most of them in remote parts of India. The scheme offers exclusive traffic rights and, when needed, subsidies to the airlines which connect the secondary and tertiary airports with major hubs in the country.

The expansion would most likely also include only domestic services. The government earlier this year floated the idea of including international routes under the scheme but these plans have not yet materialised.

The announcement comes amid the decision of Kannur to pull out of UDAN and terminate its participation in the scheme. The new airport in the northern part of Kerala, one of the southernmost Indian states known for its tourism industry, has decided that by awarding exclusive traffic rights under the UDAN scheme it would be jeopardising its own financial situation.
24/07/18 ch-aviation

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