Central Government announced UDAN Yojana or scheme for the Regional Connectivity Scheme. UDAN Scheme is ‘Ude Desh Ka Aam Nagrik’. Under this scheme, airlines will receive a funding in which state government will provide 80 percent of subsidy and remaining 20 percent will be paid by the centre.
Government announced total of 45 new routes which will be connected under UDAN Yojana. For the instance, 50 percent of the seats under the RCS for a one-hour flight will cost under Rs 2500.
As per analysts’ view, SpiceJet’s Fleet with 17 Q400s which are 78 seaters are perfect for all RCS routes. AAI Airports in the regional locations are ready to manage extra traffic. While the state government owned airports will need some work.
On the 5th March 2017, Cabinet had agreed to use Rs 4500 Crore to renovate 50 underserved airports. Many states are also planning to decrease aviation fuel tax to 1 % for the flights which are originating from their airports.
Regional connectivity Scheme – RCS second phase may begin in six months. Within 4 to 6 months, UDAN flights will start operation.
In UDAN Flights, seating capacity will be from 19 to 78 and 50 percent tickets will be available under Rs 2500 for the per hour flight.
As a part of the National Civil Aviation Policy 2016, Government introduced Udan in 2016.
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