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Question

77. With reference to Regional Connectivity Scheme.

i) The subsidy will be provided under the UDAN (Ude Desh ka Aam naagrik) scheme for three-years so that the route would become viable.

ii) It will be provided to airlines to fund their losses to enable them to offer airfares at Rs. 1000 for an hour’s flight on half the seats under the Regional Connectivity Scheme.

Which of the above is/are correct?


A

a) i only

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B

b) ii only

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C

c) Both i and ii

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D
d) None
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Solution

The correct option is A

a) i only


Ans 77.A

Explanation: The RCS aims to boost air travel in Tier II and Tier III cities by capping fares at Rs 2,500 per one hour flight. The AAI is the implementing authority of the scheme. Its objective is to make flying affordable for the masses, to promote tourism, increase employment and promote balanced regional growth. As per the scheme, the Union Government will subsidise the losses incurred by airlines flying out of dormant airports to allow airlines to charge Rs. 2,500 for an hour’s flight to passengers. About 80% of the subsidy will be collected by charging a levy of up to Rs.8, 500 on each departing flight of domestic airlines and the rest 20% will come from the respective state governments


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