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Aviation scheme UDAN takes off, fares capped at Rs 2,500 for 1-hour flights

IBEF:  October 24, 2016

New Delhi: The Government of India aims to launch its first budget regional flight under the regional connectivity scheme (RCS), which has been named Ude Desh ka Aam nagrik (UDAN), by January 2017. Under the scheme, which aims to enable the common man to afford air travel, airfares will be capped at Rs 2,500 (US$ 37.37) for half of the seats in one-hour flights. UDAN will be based on market mechanism as well as bidding for a minimum of 50 per cent seats in the participating airline’s flight and the rest would be market-based pricing. The cap on fares will be reviewed periodically based on consumer price index (CPI) for industrial workers and would also vary in tune with duration of a flight. The Government also plans to upgrade 50 more unserved and underserved airports in the country, in order to boost air connectivity across pan-India.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.