At a national-level meeting on regional connectivity scheme (RCS), organised by the Union Civil Aviation Ministry with airlines, airport operators, State governments and other stakeholders, the state governments have asked the Centre to include long-distance flights in its regional connectivity scheme. On the other hand airlines sought subsidies to be awarded for a longer period to make the plan a success.
The draft regional connectivity scheme provides subsidies to airlines for three years so that they offer Rs 2,500 as fares for an hour’s flight on limited seats on the regional routes, the airlines however demanded to get subsidy for a longer period. They also voiced their financial concerns.
Civil Aviation Secretary R.N. Choubey said that “We are examining all the suggestions with an open mind,” and added that all the States had unanimously” supported the regional connectivity scheme. All the routes connecting underserved or unserved airports within 200-800 km distance can become a part of the scheme. The government plans to come out with a full-fledged policy on the RCS by 15 August and, thereafter, would invite applications from the airlines for participation.
The government’s planned RCS, set up under the New Civil Aviation Policy (NCAP), 2016, aims to develop and connect underserved and unserved airports. Under the scheme, the government will provide 80 per cent of the subsidy to airlines by charging a levy on each departure from airlines operating on metro routes, while the remaining 20 per cent will come from States. For RCS-bound operators, States have to reduce value-added tax on aviation turbine fuel to 1%, besides providing police and fire services free of cost, and power, water and other utilities at minimal rates.
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