State governments will be able to encourage tourism on preferred international air routes by offering subsidy to domestic airlines for a period of three years. The Ministry of Civil Aviation has prepared a draft scheme document for “UDAN International” and invited comments from stakeholders till September 4.
The scheme is designed for State governments that are keen to promote air connectivity on international routes identified by them and for which they are willing to provide subsidy to airlines. As per the draft, a State will identify international routes for which the Airports Authority of India (AAI) will determine a subsidy amount per seat and invite bids from domestic carriers.
This will be followed by airlines submitting their proposals, which will include the routes they wish to connect as well as the subsidy needed by them. Read More