Regional connectivity gets boost, government awards 128 air routes

Image
IANS New Delhi
Last Updated : Mar 30 2017 | 7:43 PM IST

Giving flight to its 'Udan' policy for regional connectivity, the government on Thursday awarded contracts to five companies to operate flight services on 128 routes that will connect 70 airports, most of them either used partially or unused.

The airports are spread across the country, 24 in the western region, 17 in northern region, 11 in southern region, 12 in eastern region and six in north eastern region.

"In the first round, about 70-72 airports will see scheduled flights. It will ensure more people fly," said Ashok Gajapati Raju, Civil Aviation Minister, at an event held to issue Letter of Awards to five airline companies to operate flights under the first phase of the Regional Connectivity Scheme (RSC).

The seating capacity of airlines under the scheme will range from 19 to 78, and 50 per cent of the seats in every flight will have a fare cap of Rs 2,500 per seat per hour.

The airline companies chosen are Airline Allied Services Limited, Spicejet Limited, Turbo Megha Airways Private Limited, Air Deccan and Air Odisha Private Limited.

Under the proposal, 27 served airports, 12 underserved airports and 31 unserved airports will be connected.

While first flight under the scheme is going to take off in April, all scheduled flights in the first phase will be operational by September.

The scheme is known as UDAN (Ude Desh Ka Aam Naagrik), which is a key component of the National Civil Aviation Policy.

Jayant Sinha, Minister of State for Civil Aviation, who was also present in the event, said the aviation markets at international and national level were increasing rapidly.

"Now, the UDAN scheme will stimulate regional aviation market, which will serve the underserved and unserved airports" Sinha said.

He added that the government had tried to keep the fare as affordable as possible by keeping ATS (Air Traffic Services) charges low, removing airport charges and taking the VGF (Viability Gap Funding) down to modest level.

The government has decided to give VGF of Rs 205 crore to the selected airline companies under the scheme.

Some of the routes connect major cities with small towns such as Delhi-Bhatinda, Delhi-Shimla, Agra-Jaipur, Mumbai- Nanded, Kolkata-Rourkela, Ahmedabad-Mundra, Chennai-Mysore. There are routes that connect small towns with each other such as Pantnagar-Dehradun, Salem-Puducherry, Shilong-Slicher.

--IANS

spk/rn

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Mar 30 2017 | 7:32 PM IST

Next Story