Wednesday, November 21, 2018

Regional cargo flights may get viability funding

New Delhi: India might soon announce a programme to provide viability gap funding (VGF) for cargo flights connecting its hinterland to major urban hubs, building on the success of the earlier plan to promote regional air connectivity through federal cash incentives.
“To promote regional cargo flights, a model to provide VGF on similar lines as being provided for regional flights will be announced. We will also be looking at the possibility of linking the Regional connectivity scheme (RCS) under the UDAN plan,” said an aviation ministry official, who did not want to be identified.
The official added that a study would be conducted to finalise a programme for cargo flights under the new logistics and cargo policy to be announced soon.
Under the existing UDAN plan for regional connectivity, the government has fixed fares on flights to unserved and underserved destinations in the country at Rs 2,500/ hour of flights and offers monetary subsidies to airlines.
The Indian aviation market is not only registering double-digit growth in passenger numbers but also in the cargo segment, prompting Airports Authority of India (AAI) to start a cargo subsidiary.
21/11/8 Mihir Mishra/Economic Times