Unveiling new draft for affordable international traveling, UDAN scheme takes off on a high note!

NewsBharati    22-Aug-2018
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New Delhi, August 22: With the launch of UDAN scheme, the aviation industry has seen a considerable high note in the sector. Viewing the increasing high note and affordability to air travelers, the central government unveiled a draft scheme for extending the affordable air travel programme UDAN to international circuits envisages increasing the international ticketing to 20 crores by 2027.

The draft mentioned the scheme to be made operational only for states, which demonstrate their commitment to implement and provide the requisite support for promoting operations under the scheme. With the state governments identifying the routes for operation, the draft International Air Connectivity (IAC) scheme visualizes to increase the international ticketing.

UDAN was launched in 2016 to make air travel affordable for people through subsidized ticket rates and to provide air connectivity to smaller towns. Some states and aviation leaders had earlier suggested expanding the UDAN scheme overseas.

 

According to the draft scheme, state governments will identify the routes to be connected, and airline operators will assess demand on the identified routes and submit proposals for providing connectivity. The Assam government has announced Rs 100 crore as feasibility gap funding to promote international air connectivity from Guwahati. Operations under the scheme will be permitted through fixed-wing aircraft only with more than 70 seats.

The scheme has proposed to set up an International Air Connectivity Fund (IACF) which is ought to be a dedicated fund for providing subsidy support under the scheme. It will be created through the contributions of state governments.

The subsidy support shall be provided to selected airlines only for the passenger seats, which remain unsold at the time of IAC flight operation, from the total number of passenger seats for which subsidy has been requested by the selected airline as part of its proposal. The subsidy support will be extended only up to three years.