Union Government started the Regional Air Connectivity Scheme (RCS) by awarding 128 regional routes to five airlines — Alliance Air, SpiceJet, Turbo Megha, Air Odisha and Air Deccan.
Under the RCS, the Government has proposed at least half the seats on every flight be available under a fare cap of ₹2,500 per seat per hour of flying.
An unserved airport is one to which there is no daily service, while an under-served airport is one which has not seen a flight for two consecutive flight schedules.
Over 45 unserved and under-served airports would be connected under the scheme — UDAN (Ude Desh ka Aam Naagrik) that seeks to make flying more affordable.
The operators would be operating 19-78 seater aircraft. The airports that would be connected under UDAN include Bhatinda, Puducherry and Shimla.
On each flight, 50% of the seats would have a cap of Rs 2,500 per seat/hour.
Under UDAN, the operators would be extended viability gap funding. The amount is estimated to be around Rs 205 crore per annum for the operators chosen in the first round of bidding.
The scheme provides for various benefits including no airport charges and three-year exclusivity on the routes.
