Central government had unveiled draft scheme named UDAN Scheme (Udey Desh ka Aam Nagrik) on July 1 which fixed all inclusive airfares at Rs 2500 for one hour flights.
Now the Union Civil Aviation minister Ashok Gajapathi Raju is expected to announce the final contours of UDAN (Udey Desh ka Aam Nagrik) scheme on 21 October 2016.
Under this UDAN scheme Aam Aadmi can make its flying journey at fares as low as 2500 for one hour as it has to be launched on Friday 21 October
This scheme is proposed to boost up the domestic aviation sector in the capital of the country.
This scheme will seek to provide the air services between the areas which are un-served or under- served besides capping ticket prices.
Under this scheme domestic aviation sector will be undertaken which is clocking 20% passenger growth since more than one year.
The number of passengers flown by the Indian carriers is surging to 23.46% in September.
It is the expectation of the state government that the first flight under RCS (Regional Connectivity Scheme) to take off in the end of this year or early January 2017.
Under this scheme the government has made a plan to upgrade 50 un-served and under-served airports in the country which will boost the connectivity pan-India.
Apart from 2500 airfares a slew of incentive is being proposed under RCS. Under RCS the airlines will be extended Viability Gap Funding (VGF) while the state government is required to offer certain concessions such as providing police and fire services free of cost.
The government has notified that the purchasing of jet fuel which come under RCS will occur only 2% excise duty which is the part of new civil aviation policy.