Centre makes a Rs 4,500-crore bet on regional air connectivity, but is it viable?


Even as the union cabinet plans to spend Rs 4,500 crore in developing 50 airports under the regional air connectivity scheme Udan (Ude Desh Ka Aam Naagrik), the reality is that regional airlines such as Air Costa and Air Pegasus have ceased operations since February 2017 and July 2016, respectively due to financial issues. This raises doubts on whether there is a viable regional air connectivity model that can be tapped.

Captain GR Gopinath, founder of the erstwhile low-cost airline Air Deccan, says only five percent of India’s 1.25 billion population travels by air. “Out of that, 90 percent travels between metros and 60 percent of the passenger traffic is between Delhi and Mumbai,” he tells Forbes India. Precisely the reason behind the Udan scheme to stimulate growth in Tier 2 and 3 cities.

Under the scheme, the government plans to cap air fares at Rs 2,500 for an hour-long flight of about 500 kilometres as well as provide tax sops to airlines and give them concessions on electricity, water and other utilities at the upcoming regional airports. According to reports that quote government sources, at least 11 airlines, including Air India, SpiceJet and TruJet, have bid to operate regional flights under Udan. However, it is doubtful whether all would take off under Udan. Read More…

 

Credit By : forbesindia.com

You may also read!

Lt Swati Mahadik, Lt Nidhi Dubey, A Shining Example Of Women Power: PM

Prime Minister Narendra Modi on Sunday congratulated the newly commissioned Lieutenants Swati Mahadik and Nidhi Dubey, wives of Late

Read More...

Army Aviation Squadron Organises ‘Op Sadbhavana’ To Encourage Young Minds

As a part of 'OP Sadhbhavna' initiative, 663 Army Aviation Squadron (R&O) undertook a demonstration at Army Aviation Base

Read More...

Army Busts Terrorist Hideout In Handwara

The Indian Army on Sunday busted a terrorist hideout in Jammu and Kashmir’s Handwara District and seized a large

Read More...

Leave a reply:

Your email address will not be published.

Mobile Sliding Menu