Foreign carriers could foray into launching regional flights

The Dollar Business Bureau

Giving a boost to the Government’s regional connectivity plan, some major airlines from the Gulf are likely to launch regional airlines under the UDAN scheme that would make every common man’s dream come true. The Ministry of Civil Aviation too has confirmed the same.

According to the regional connectivity scheme UDAN (Ude desh ka aam nagrik) flights would be connected between unserved and underserved parts of the country at subsidised rates. And the Centre on its part will provide a higher subsidy and also allow airlines to transfer their rights or contract to avail the subsidy under the scheme. The government has also announced  a new category of airlines called the SCA airlines (Schedule Commuter Airlines) that can commence operations with just one aircraft in its first year, and also bid and be granted exclusive rights in their choicest routes of operation for 3 years.

Under the UDAN scheme the government subsidy amount for those airlines that operate between unserved or underserved airports will be 10% higher than the sum offered to airlines that serve only one regional airport. The government is likely to fund the losses of the airlines under the 3 year subsidy to enable the airlines to offer fares at Rs 2500 for one hour flight on half the seats. There are in the country 16 airports that have had no flights for over a year and 399 airstrips that have had no flights operating for over 3 years now.