The government expects the first flight under RCS (regional connectivity scheme) to take off by the end of this year or early January 2017.
Global airlines grouping International Air Transport Association, in its latest 20 years forecast, has projected that India would add 322 new fliers in its total 442 million air passengers by 2035.
Under the scheme, government also plans to upgrade 50 unserved and underserved airports in the country, which would further boost air connectivity pan-India.
There are 394 unserved and 16 under-served airports.
A slew of incentives are being proposed in the RCS apart from the Rs 2,500 airfares. Airlines under RCS will be extended viability gap funding (VGF) while the states concerned are required to offer certain concessions such as providing police and fire services free of cost.
VGF will be created by way of charging a small levy per departure on all domestic flights on certain routes and small aircraft below 80 seats. Central and state governments will be sharing the VGF amount.
The government has already in notified August excise duty of 2 per cent for jet fuel purchased from airports that come under RCS, which is part of the new civil aviation policy.
(Sourced from agencies, feature image courtesy:hindi.goodreturns.in)
