Centre to boost air travel; Rs 2,500 fare for flights till 500 km

New Delhi:  The Centre unveiled its plan to boost air travel, connecting small towns  with cities by capping the fare for one-hour flights (about 500 km) at Rs 2,500 for half of the seats in each flight.

As per the Regional Connectivity Scheme, re-christened ‘Ude Desh ka Aam Naagrik’ or Udan, the fare has been capped at '3,500 for 800  km and beyond for half the seats on flights. The first flight under the Udan scheme will take off in January, civil aviation minister Ashok Gajapathi Raju said.

The scheme applies to an “unserved” or “underserved” airport to another, or to a major airport. The distances covered are from 151 km to 800 km and above and the  fare caps vary.

Charge on flight departure likely
For instance, the fare-cap for the minimum distance of 151 to 175 km is Rs 1,420. The government now proposes to levy a “very small amount” per flight departure as part of the viability gap funding (VGF) for the scheme.

The scheme is part of the Modi government’s bold move to make flying cheaper for the common man on less-frequented aviation routes. As per the initial proposal, an amount of Rs 8,000 per domestic flight departure was being suggested which will translate to about Rs 60 per passenger if the airlines pass on the cost to the passenger.

When asked about objections and reservations raised by some airlines against the proposed cess, civil aviation secretary RN Choubey said the government “did not agree” with such views and that any money raised would “remain within the aviation sector”. Some aviation-watchers feel the UDAN may not be economically viable, even as Mr Raju said the scheme could only succeed if it was viable.