To tap Indian civil aviation market's growth potential, the government on Saturday announced a modified regional air connectivity scheme UDAN (Ude Desh ka Aam Naagrik) to connect 120 new destinations, airport projects in Bihar and upgradation of infrastructure for air cargo in the Union Budget.
The expansion of existing airports and development of new airports will continue expeditiously, Finance Minister Nirmala Sitharaman said on Thursday and emphasised that the country's aviation sector has been galvanised in the past 10 years.
For 50 per cent of the seats of flights under UDAN, the fare cap will be Rs 2,500, and the rest will be market-based pricing.
The levy will come into effect from December 1, 2016
Green light likely for services on underserved routes between regular airports
Airfares are set to rise with the government deciding to levy up to Rs 8,500 per flight on major routes to fund the regional air connectivity scheme.
Thomas Cook India's internal data had highlighted Lucknow region as a high potential source market for holiday business.
India remained the world's fastest growing domestic aviation market with 51 straight months of doubled-digit traffic growth but the woes of passengers as well as carriers manifested in myriad forms.
UDAN scheme takes off; fares capped at Rs 2,500 for 1-hr flight
'It goes without saying that Air India has now no imaginable reason to exist.'
UDAN demonstrates that good policy-making can fulfill important public requirements without requiring budgetary support, says MoS for civil aviation Jayant Sinha.
How sustainable and prudent is the policy of boosting services without commensurate growth in infrastructure in the relevant sectors, asksA K Bhattacharya.
'The regional market has been brought to life. This is a big development in India's aviation sector,' says Civil Aviation Minister Jayant Sinha.
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