- The Ministry of Civil Aviation (MoCA), Government of India launched the Regional Connectivity Scheme (RCS)-UDAN on 21st October, 2016.
- The Airfare cap under RCS-UDAN for fixed wing aircraft ranges from Rs. 1420/- for 151 kilometers to Rs. 3500/- for >800 kilometers.
- MoCA has signed Memorandum of Understanding (MoU) on RCS-UDAN with 16 State Governments / UTs to provide concessions as mentioned in the Scheme.
The subsidy will be provided under the UDAN (Ude Desh ka Aam naagrik) scheme for three-years so that the route would become viable.
It will be provided to airlines to fund their losses to enable them to offer airfares at Rs. 2,500 for an hour’s flight on half the seats under the Regional Connectivity Scheme.
The subsidy amount for airlines connecting to one regional airport will vary between Rs. 2,350 and Rs. 5,100 per seat depending upon distance covered between two destinations. Besides, airlines can also transfer their rights or contract to get subsidy from government and fly on regional routes to another airline operating a similar type of aircraft.