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Officers mentioned that just about 68 airports have been operationalised for Regional Connectivity Scheme (RCS)-UDAN (Ude Desh Ka Aam Nagrik) flights since inception of UDAN scheme.
Chosen Airline Operators (SAOs) have operationalised 425 UDAN routes involving 68 airports/heliports/water Aerodromes throughout the nation. SAOs have been working many routes even after completion of three years of exclusivity interval beneath the scheme.
Nevertheless, COVID-19 pandemic has adversely affected the aviation sector, together with home RCS flight operations. Suspension of scheduled industrial operations in view of COVID-19 posed a number of challenges. Passenger demand got here down drastically making the operation of flights unviable.
Furthermore, monetary well being of the airways was impacted given the collapse of income streams coupled with excessive fastened prices ensuing right into a liquidity crunch. The Authorities launched sure coverage reforms for sustainability of operations of RCS-UDAN submit COVID 19. These operational and monetary flexibilities/relaxations and economising measures are deemed mutually useful for all stakeholders by sustaining the advantage of air connectivity to passengers.
Regional Connectivity Scheme is a market pushed scheme. Underneath the scheme, airways assess demand and nature of provide required on explicit route and primarily based on their evaluation take part within the bidding course of to be performed every now and then.
A current Parliament reply mentioned the first goal of RCS is to facilitate/stimulate regional air connectivity by making it reasonably priced. Selling affordability of regional air connectivity is envisioned beneath RCS by supporting SAOs by means of concession by Central Authorities, State Governments/UTs and airport operators to scale back the price of airline operations on regional routes and monetary (Viability Hole Funding or VGF) assist to fulfill the hole, if any, between the price of airline operations and anticipated revenues on such RCS routes. Central Authorities and State Governments share Viability Hole Funding (VGF) within the ratio of 80:20 whereas for the States in North-Japanese area/Union Territories (UT”s) the ratio is 90:10.
