Surging oil price and creaky infrastructure threaten to ground India's aviation dreams even as it is poised for a perfect take-off.
India's big aviation ambition soared sky high yet again last month. In January, the government awarded 325 more routes to airlines and helicopter operators under its Regional Connectivity Scheme (RCS). The scheme, with a catchy acronym UDAN (Ude Desh Ka Aam Naagrik) - which in Hindi is let the common citizen fly - focuses on providing air connectivity to remote corners of the country.
The 325 routes have been awarded to 15 airlines and helicopter operators - who have joined the scheme for the first time - after bidding for the second round of UDAN. UDAN-II, which follows bidding for UDAN-I last March, will see revival of 56 airports and helipads in far-flung areas of India that will get connected to 36 existing aerodromes. UDAN-I had resulted in five air carriers winning the rights to fly 128 routes connecting 31 non-functioning airports in tier-II and -III cities and towns.
UDAN-II will put Kargil in the upper reaches of the Himalayas in Jammu and Kashmir's Ladakh prominently on the country's aviation map. Besides, Darbhanga in Bihar will get air connectivity to metros, like New Delhi, Mumbai and Bengaluru. Hubballi in Karnataka will be linked by air to nine other cities in the country, while Kannur in Kerala will be on the flight path of eight cities.
Under the RCS, the Union Civil Aviation Ministry awards routes to airlines with an objective to promote air connectivity. The airlines that win the routes will have to offer half of the seats on their flights at Rs 2,500 per hour (helicopter operators can offer up to 13 seats at lower fares). The remaining seats can be offered at market rates. The government will compensate the airlines joining the scheme through a viability gap funding (VGF) mechanism, for which airlines have to put in their bids. The airlines will be selected for the designated routes based on the lower VGF claimed in the bids.
Esta historia es de la edición February 2018 de India Business Journal.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición February 2018 de India Business Journal.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Top Crisis
Short-term, consumer-centric measures have left the tomato, onion and potato farmers struggling to eke out a living.
Boon Or Bane?
With some adequate safeguards, the government's e-assessment scheme can be a win-win situation for both tax department and taxpayers.
Revisiting Development
Sustainable development is the way forward for India, which is in the midst of an economic downturn, ecological crises and stark human distress.
The Cabotage Debate
Relaxation of Cabotage rules has pitted foreign shipping lines against domestic shipping companies.
Catch-22
India finds itself in an unenviable position, as it weighs the pros and cons of joining RCEP.
Accept Mistakes Quickly
Anto Binish Kaspar is a firm believer in technology.
We Will Have 30 Franchisees By 2020
Naresh Sharma , CEO , Skora paints
The Revival Conundrum
Along with a patchwork of band-aids, a smart combination of monetary and fiscal measures can get the ailing economy back into the pink of health.
Mahatma Gandhi @150
The Mahatma firmly advocated that this world has enough for everyone's need but not greed. Gandhian economics, no wonder, cannot be more relevant today in times of erratic economic development, jobless growth and adverse climate changes.
Bitterness Lingers
A hike in subsidy does little to boost exports, thanks to a glut in the global market, and leaves sugar prices subdued in the domestic market.
