UDAN Scheme For regional Connectivity

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.