Govt unveils regional air connectivity scheme for affordable flying

Under the scheme, the government has decided to cap airfares at Rs 2,500 for one-hour flights that connects an unserved airport

Regional connectivity plan to promote affordable flying: Raju
BS ReporterAgencies New Delhi
Last Updated : Jul 01 2016 | 4:11 PM IST
Civil Aviation Minister Ashok Gajapathi Raju today released details of the regional connectivity scheme which is expected to boost air connectivity by promoting affordable flying. 

Under the scheme, which is part of the ambitious civil aviation policy announced on June 15, the government has decided to cap airfares at Rs 2,500 for one-hour flights that connects an unserved airport. A regional connectivity fund will be set up by the Centre which will provide 80 per cent of the subsidy while the rest 20 per cent will come from the states. 

RCS is expected to be in place from the second quarter of the current financial year. "Regional connectivity is the corner stone of our civil aviation policy. It shall promote affordable flying and balanced regional growth," Raju said. 

As per the policy, un-served and under-served airports would be revived to boost regional connectivity. Other measures include extending concessions, giving viability gap funding for operators as well as providing cost-effective security solutions by Bureau of Civil Aviation Security (BCAS) and state governments.


*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: Jul 01 2016 | 4:10 PM IST

Next Story