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PM Modi to flag off first flight under UDAN tomorrow: All you need to know about the scheme
The selected airline operator will provide 50 per cent of the flight capacity with a cap of Rs 2500 per hour on fixed wing aircraft and a minimum of 5 and a maximum of 13 on helicopters with the same price cap.
New Delhi | Updated: April 26, 2017 10:44 pm
Ude Desh ka Aam Naagrik namely UDAN yojna scheme was declared by the civil aviation ministry in October 2016.
Making air travel more affordable to people, Prime Minister Narendra Modi will on Thursday launch a regional air connectivity scheme under which the fares of flights will be capped at Rs 2500 per seat per hour. And the first flight to launch the scheme will be flagged off from Shima to Delhi the prime minister. The scheme is expected to boost regional connectivity. Simultaneously, flights will be launched on Kadapa– Hyderabad and the Nanded-Hyderabad sectors.
What is UDAN scheme
Ude Desh ka Aam Naagrik namely UDAN yojna scheme was declared by the civil aviation ministry in October 2016. It was devised to make air travle cheaper for those who travel frequently for commercial purpose. Under this scheme, airfare for a 1-hour journey of appx. 500 km on a fixed wing aircraft or for 30 minute journey on a helicopter would be capped at Rs. 2,500. Under this programme, the government intends to connect 45 unserved and under-served airports. Five airlines were awarded 128 routes under the scheme last month after a bidding process. According to an official statement, 24 airports in the western region, 17 in the northern region, 11 in the southern region, 12 in east and 6 in north-eastern parts of the country are proposed to be connected under this scheme.
Why was the scheme launched
UDAN, a first-of-its-kind scheme globally to stimulate regional connectivity through a market-based mechanism, is aimed at correcting the imbalance in the domestic aviation market. It seeks to make flying affordable by connecting unserved and under-served airports. It is also expected to stimulate growth (in terms of employment and investment) in the regional aviation market and connect airports in the hinterland areas that don’t have flight services.
How will it function
The selected airline operator would have to provide 50 per cent of the flight capacity with a cap of Rs 2500 per hour on fixed wing aircraft and a minimum of 5 and a maximum of 13 on helicopters with the same price cap. Airlines operating RCS flights will sell 50 per cent of the tickets at price not exceeding Rs 2,500 for a one-hour flights, while for the remaining 50 per cent seats they are allowed charge market prices. Under ‘UDAN’, the operators would be extended viability gap funding. The amount is estimated to be around Rs 205 crore per annum for the operators chosen in the first round of bidding. State governments will provide a certain share of VGF. 19 States and 3 Union Territories have signed a Memorandum of Understanding for this purpose.
Which all airlines are part of the scheme
The airlines selected under first round are SpiceJet, Air India subsidiary Alliance Air and regional airlines Turbo Megha Airways, Air Deccan and Air Odisha Aviation. Some of the inactive airports selected are Shimla, Bikaner, Agra, Gwalior, Rourkela, Kadapa, Jharsuguda, Vidyanagar, Burnpur, Kullu, Diu, Mysore, Shillong, Jagdalpur, Salem, Utkela, and Hosur. The regional airlines will connect these destinations with their nearest bigger airports such as Delhi, Chennai, Bhubaneswar, Bengaluru, Ahmedabad, Mumbai and Jaipur, among others.
indianexpress.com/article/business/aviation/pm-modi-to-flag-off-first-flight-under-udan-tomorrow-all-you-need-to-know-about-the-scheme-4629615/
The selected airline operator will provide 50 per cent of the flight capacity with a cap of Rs 2500 per hour on fixed wing aircraft and a minimum of 5 and a maximum of 13 on helicopters with the same price cap.
New Delhi | Updated: April 26, 2017 10:44 pm
Ude Desh ka Aam Naagrik namely UDAN yojna scheme was declared by the civil aviation ministry in October 2016.
Making air travel more affordable to people, Prime Minister Narendra Modi will on Thursday launch a regional air connectivity scheme under which the fares of flights will be capped at Rs 2500 per seat per hour. And the first flight to launch the scheme will be flagged off from Shima to Delhi the prime minister. The scheme is expected to boost regional connectivity. Simultaneously, flights will be launched on Kadapa– Hyderabad and the Nanded-Hyderabad sectors.
What is UDAN scheme
Ude Desh ka Aam Naagrik namely UDAN yojna scheme was declared by the civil aviation ministry in October 2016. It was devised to make air travle cheaper for those who travel frequently for commercial purpose. Under this scheme, airfare for a 1-hour journey of appx. 500 km on a fixed wing aircraft or for 30 minute journey on a helicopter would be capped at Rs. 2,500. Under this programme, the government intends to connect 45 unserved and under-served airports. Five airlines were awarded 128 routes under the scheme last month after a bidding process. According to an official statement, 24 airports in the western region, 17 in the northern region, 11 in the southern region, 12 in east and 6 in north-eastern parts of the country are proposed to be connected under this scheme.
Why was the scheme launched
UDAN, a first-of-its-kind scheme globally to stimulate regional connectivity through a market-based mechanism, is aimed at correcting the imbalance in the domestic aviation market. It seeks to make flying affordable by connecting unserved and under-served airports. It is also expected to stimulate growth (in terms of employment and investment) in the regional aviation market and connect airports in the hinterland areas that don’t have flight services.
How will it function
The selected airline operator would have to provide 50 per cent of the flight capacity with a cap of Rs 2500 per hour on fixed wing aircraft and a minimum of 5 and a maximum of 13 on helicopters with the same price cap. Airlines operating RCS flights will sell 50 per cent of the tickets at price not exceeding Rs 2,500 for a one-hour flights, while for the remaining 50 per cent seats they are allowed charge market prices. Under ‘UDAN’, the operators would be extended viability gap funding. The amount is estimated to be around Rs 205 crore per annum for the operators chosen in the first round of bidding. State governments will provide a certain share of VGF. 19 States and 3 Union Territories have signed a Memorandum of Understanding for this purpose.
Which all airlines are part of the scheme
The airlines selected under first round are SpiceJet, Air India subsidiary Alliance Air and regional airlines Turbo Megha Airways, Air Deccan and Air Odisha Aviation. Some of the inactive airports selected are Shimla, Bikaner, Agra, Gwalior, Rourkela, Kadapa, Jharsuguda, Vidyanagar, Burnpur, Kullu, Diu, Mysore, Shillong, Jagdalpur, Salem, Utkela, and Hosur. The regional airlines will connect these destinations with their nearest bigger airports such as Delhi, Chennai, Bhubaneswar, Bengaluru, Ahmedabad, Mumbai and Jaipur, among others.
indianexpress.com/article/business/aviation/pm-modi-to-flag-off-first-flight-under-udan-tomorrow-all-you-need-to-know-about-the-scheme-4629615/
