The UDAN scheme should help India get connected like never before.
UDAN – Bharat takes to flying
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- Air travel in India : It has generally been a luxury in India, due to high costs, and low incomes. But air traffic in India is steadily growing, and India became third globally in domestic air traffic with 100 million passengers in 2016, after the US (719 million) and China (436 million), and beating Japan (97 million domestic passengers). India is 4th (with UK) in overall passenger traffic (131 million).
- Fastest Growing Market! India is the world’s fastest growing aviation market. Government has launched the regional connectivity scheme (RCS) – UDAN (Ude Desh ka Aam Naagrik) - to get more people flying, and to connect the country’s unserved and under-served airports. Download various Aviation related PDFs from Bodhi Resources page here (go to Infrastructure tab)
- UDAN – Ude Desh ka Aam Naagrik – is an ambitious scheme of the Modi government to introduce budget regional flying by connecting small towns. The fares of these flights under the UDAN scheme would be capped at Rs. 2,500 for a one-hour flight. That can lead to some smart manipulation by airlines, though J
- RCS : The regional connectivity scheme (RCS) will be funded by levying a nominal fee on aircrafts landing at bigger airports. Some aviation companies feel that it would be an additional burden on the regular air travelers, but the government said that the amount of levy would be very nominal.
- Three important steps : The govt. took these to strike a balance between affordability to the common man and profitability for regional operators are (1) successful bidders will have exclusive rights to operate on a regional route for three years, (2) UDAN flights operating from small towns to a metro city will not have to pay any airport charges at the bigger airport, and (3) entrepreneurs would be allowed to lease planes in small numbers also to become regional operators.
- Airports : India currently has 16 under-served airports getting less than seven flights per week. 15 to 20 airports are ready but they do not get regular flights. The RCS would help ensure viability of these airports.
- Who won? Under the RCS, five airlines have won bids to operate on 128 routes which will connect 70 airports, out of which 31 are unserved and 12 under-served. The UDAN flights will connect airports spread across over 20 states and union territories.
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