New Delhi: The new civil aviation policy aims to cap the fare for a one-hour flight to around Rs 2,500 under the Regional Connectivity Scheme (RCS), but all such journeys will not come under the ambit.
The Ministry of Civil Aviation will be enforcing the upper limit on fares on routes selected under the scheme only after the state concerned, too, shows interest. The cap on fares for a 30-minute journey could be Rs 1,250 and for a 45-minute journey around Rs 1,800.
Airlines will get a Viability Gap Funding (VGF) if they opt for the scheme, and also if it is flying to or from an airport which is presently unserved. For example, an airline could get VGF if it flies between Delhi and Bhatinda that is at present unserved, but not Delhi-Chandigarh or Bengaluru-Mangaluru.
Though the ministry is planning to roll-out the scheme within three months, there is a lot of ground to cover. The ministry will first bring out a draft paper on how it plans to roll-out the scheme in the next 10 days, and it may take another month before finalising it.
17/06/16 Deccan Herald
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The Ministry of Civil Aviation will be enforcing the upper limit on fares on routes selected under the scheme only after the state concerned, too, shows interest. The cap on fares for a 30-minute journey could be Rs 1,250 and for a 45-minute journey around Rs 1,800.
Airlines will get a Viability Gap Funding (VGF) if they opt for the scheme, and also if it is flying to or from an airport which is presently unserved. For example, an airline could get VGF if it flies between Delhi and Bhatinda that is at present unserved, but not Delhi-Chandigarh or Bengaluru-Mangaluru.
Though the ministry is planning to roll-out the scheme within three months, there is a lot of ground to cover. The ministry will first bring out a draft paper on how it plans to roll-out the scheme in the next 10 days, and it may take another month before finalising it.
17/06/16 Deccan Herald
