India’s first flight under Regional Connectivity Scheme (RCS) may take off in January with a Rs 2,500 fare cap for a 500 km flight.
However, fliers on major routes will have to pay a cess to bankroll the programme. Unveiling ‘UDAN’ four months after a draft was published, the government on Friday said the scheme would jumpstart the regional aviation market but made it clear that it is unable to agree with the airlines’ criticism against a very small levy.
The notification on the quantum of levy will be issued in next two days while the executive order is likely to come up by month end.
The decision immediately drew flak from airlines, which demanded that the government fund the programme and not penalise fliers. The “unique market-based” scheme — Ude Desh Ka Aam Nagrik or UDAN (Let the common man fly) — has undergone changes from the draft stages as it now covers 150-800 km instead of 250-800 km. It also has enhanced subsidy under the Viability Gap Funding (VGF) for airlines winning the route in an auction, likely in January.
The limit of RCS airfare will vary from Rs 1,420 to Rs 3,500 for fixed-wing aircraft. For helicopters, a half-an-hour ride under the scheme will cost Rs 2,500 and for over one-hour duration, the cap will be fixed at Rs 5,000.
The scheme will be in operation for 10 years and it envisages providing connectivity to unserved and under served airports through their revival.
“We are cautiously optimistic about the scheme. We need economically viable schemes in reasonable time frame and it cannot be devoid of economics,” Civil Aviation Minister Ashok Gajapathi Raju said at a press conference.
“Hawai chappal walein ko bhi hawai jahaaz pe yatra karne ka mouka milna chahiye (Those who wear hawai chappals should also get the opportunity to fly),” Minister of State Jayant Sinha said.
With this scheme, Civil Aviation Secretary R N Choubey said they hope that the annual sale of tickets reaches 300 million by 2022 from the existing 80 million.
Published 21 October 2016, 21:03 IST