UDAN Scheme For regional Connectivity
Civil Aviation Industry has launched the scheme, UDAN, to make air travel affordable for middle class of India. Under this scheme, air fare to Rs.2500/- has been capped for 1 hr. of flight i.e. distance of 450-500 kms. The scheme was declared in Oct-2016. The cap on fares would be reviewed periodically based on Consumer Price Index for Industrial Workers and would also vary in tune with duration of a flight under the Regional Connectivity Scheme (RCS), which has been named ‘UDAN’.
A few salient Features of the scheme are as under:
- The scheme is set to be launched from Feb 2017. The scheme is focused on increasing regional connectivity.
- A “first of its kind” in the world, UDAN (Ude Desh Ka Aam Naagrik) will be based on market mechanism as well as bidding for a minimum of 50 per cent seats in the participating airline’s flight and the rest would be market-based pricing. Helicopter services too can be part of the scheme i.e. 50% tickets in the flight will be reserved at Rs.2500/- per Hour. Rest Seats will be available on market rates.
