- According to Airport Authority of India’s records, only 4 UDAN routes in North-East India is currently operational.
- Launched in 2017, the Regional Connectivity Scheme (RCS)-Ude Desh ka Aam Naagrik (UDAN) seeks to connect under-served and un-served airports in India through revival of existing air-strips and airports. The scheme is being implemented by Airport Authority of India.
- Under the scheme, airlines have to cap airfares for 50% of the total seats at Rs. 2,500 per hour of flight.
- The losses for the price cap is compensated by a mechanism called Viability Gap Funding- A government grant provided to the airlines to bridge the gap between the cost of operations and expected revenue.
- The scheme is a component of the National Civil Aviation Policy (NCAP), 2016. It aims at making flying affordable to the masses and strengthening the regional air connectivity.
1 min read