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.
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