Ministry/Department: Ministry of Civil Aviation
UDAN stands for Ude Desh ka Aam Nagrik
Objective: To get more people to fly in the smaller towns. To boost regional air connectivity and provide various incentives to airlines. Aims that at least half the seats on every flight should have a fare cap of Rs2,500 per seat per hour of flying.
- The UDAN scheme seeks to provide connectivity to un-served and under-served airports of the country through revival of existing air-strips and airports.
- This first-of-its-kind scheme will ensure affordability, connectivity, growth and development.
- It aims to increase ticketing volume from 80 million to 300 million by 2022.
- Under it regional connectivity will be developed on market-based mechanism under which Airlines will bid for seat subsidies.
- It will create affordable yet economically viable and profitable flights on regional routes so that flying becomes affordable to the common man even in small towns.
- Under it, airlines will have complete freedom to enter into code sharing with larger airlines for connectivity and they will be exempted from various airport charges.
- Airlines will have exclusive rights for three years to fly on a particular regional route.
- On these routes for regional flights Airfares will be capped at 2500 rupees for an hour’s flight.
- Central and State governments and airport operators will provide a financial stimulus in the form of concessions to airlines
- The mechanism of Viability Gap Funding (VGF) will be provided to interested airlines to kick-off operations from such airports so that the passenger fares are kept affordable
- Government will provide subsidy to airlines for first three years of operations when they will have exclusive flying rights on the selected routes.
- Once the market in these routes gets jump started, it will operate on a commercial basis as per market forces of supply and demand.
- UDAN can be mentioned in answers related to infrastructure, innovative steps taken by government