Ensuring affordability and connectivity

♤ The passengers would be benefited through additional connectivity on regional routes at prices which are at or below the airfare caps making flying affordable for common man.

The operators could seek a Viability Gap Funding (VGF) apart from getting various concessions like free of cost fire, water, electricity etc. to start operations on hitherto unserved routes.

♤ For reducing operating costs for regional operators the scheme brings down the operating cost for an airline by reducing taxes on aviation turbine fuel (ATF) and airport and other charges to maintain balance between commercial and consumer interests

♤ Improving liquidity in the small plane leasing market will make it easy for entrepreneurs and airlines to start these unserved or underserved routes. For example – spicejet recently unveiled its plan to lease as many as 10 planes for this scheme.

♤ The government also plans to upgrade 50 unserved and underserved airports in the country which would further boost air connectivity pan India.