Ministry/Department: Ministry of Civil Aviation
UDAY 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
- 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.