Centre Unveils UDAN Scheme, Which Aims To Connect Regional Parts Of India Via Airline

4:41 pm 21 Oct, 2016


The central government on October 21 announced about their upcoming plan UDAN (Ude Desh Ka Aam Naagrik), under which they expect to connect more flights to the regional parts of India.

The move though comes at a time when some airlines are said to be unhappy about their proposal, especially as it is set to charge a levy for funding this scheme.

 

The Hindu

Representational Image. The Hindu

The draft of this scheme was unveiled in July and is expected to affect Air passengers on major routes as they will soon have to shell out more money for flights to major routes.

This would be done to fund the regional connectivity scheme under which the air fares would be capped at Rs 2,500 for one-hour flights.

The cap of Rs. 2500 will only be applicable for first  50 per cent of the seats and the rest will be based on market-based pricing.

According to Civil Aviation Minister Ashok Gajapathi Raju, it would be a “first of its kind” scheme in the world and they are very optimistic about it.

“We are cautiously optimistic about it (UDAN)…the first flight under the scheme is expected to take off in January 2017.”

Under UDAN scheme, the flight seats would be based on market mechanism as well as bidding for a minimum of 9 seats and a maximum of 40 seats in a fixed wing aircraft.

 

Representational Image. IBN Live

Representational Image. IBN Live

Giving a little more detail about the scheme, Civil Aviation Secretary R N Choubey said that the rules related to the levy will be “printed in the gazette in two days” while the executive order for same will be ready by the end of this month.

Though he clarified that this levy will be “very small”.

The airlines though are worried that a levy would imply, adding an additional charge on profitable routes, which would  push the air -fare up for fliers.

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