Centre meets states, airlines on regional air connectivity

The Centre unveiled a regional connectivity scheme in which air fares will be capped at Rs 2,500 for flights up to one hour on unserved and under-served routes

The Centre  on Friday met states and airlines to discuss plans for an ambitious scheme that will put the hinterland on the country’s aviation map.

A LONG FLIGHT

What states asked for
To eliminate the clause of distance from the scheme

What airlines asked for
Subsidy should be provided for a longer period than the prescribed 3 years in the draft scheme
What Centre has to do
Develop infrastructure before rolling out the scheme

Representatives from all states except Tamil Nadu, Manipur and Madhya Pradash, attended the meeting.

Airline bosses, IndiGo President Aditya Ghosh, SpiceJet Chairman Ajay Singh and Air India Chairman and Managing Director Ashwani Lohani also attended.

The Centre also unveiled a regional connectivity scheme in which air fares will be capped at Rs 2,500 for flights up to one hour on unserved and under-served routes.

Minister of State for Civil Aviation Jayant Sinha said there would be ample opportunity for airlines. “There is no lack of demand. Traffic in cities like Surat, Bhubaneswar and Mysuru will increase. There is a business opportunity in it,” he added.

The scheme has been put up for consultations with stakeholders, including state governments, airlines and airport operators. Stakeholders have been given three weeks to submit their comments on the draft scheme, which will be finalised by August.

“There was not a single state that did not commit support. Everyone wanted to participate, now the ball is in the court of entrepreneurs and airlines ” said Civil Aviation Secretary Rajiv Nayan Choubey.

An airline executive who attended the meeting  said the government would need to upgrade infrastructure if the scheme was to be executed successfully. “Our airports are choked,” he added. Choubey said the government would upgrade 60 airstrips in the first phase. Of these, 10 are owned by the Airports Authority of India (AAI) and 50 by state governments.

The scheme identifies 406 airports and airstrips for which airlines will have to participate in a reverse bidding process. The bid  for the lowest funding will be awarded the route. Airlines that win routes will enjoy exclusivity for three years.