Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

Draft regional connectivity scheme – II

  1. Routes: Routes in the air distance of 200-800 kms will qualify
  2. Concessions: Scheme would be applicable only if states reduce VAT to 1% for 10 years and if they provide free land, security and fire services
  3. Subsidy: Viability gap funding per seat depending on the distance travelled, to the airlines, for 3 years to fund the losses they incur by charging less
  4. 80% to be funded by the Centre and 20% by the States
  5. Cess: Centre would set up a regional connectivity fund and would levy a cess on airlines flying on metro routes
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