UDAN may extend its wings to Southeast Asian destinations

NEW DELHI: Residents of India’s northeastern states will soon be able to enjoy cheaper air fares to destinations in Southeast Asia. A draft policy, unveiled on Wednesday, extends the subsidised air travel programme Ude Desh ke Aam Naagrik (UDAN) to international circuits, with state governments funding and identifying the routes for operation.
“The objective of the UDAN (International) scheme is to enhance international air connectivity between Indian states and select international destinations through the provision of financial support to airlines. It is the next step after the positive domestic impact of UDAN,” aviation minister Suresh Prabhu wrote on Twitter.

“Under the scheme, the state governments will be responsible for funding the financial benefits. The scheme envisages providing monetary support, in the form of a subsidy per seat, for the unsold seats from the number of seats as bid by the airline to make operations viable,” India is trying to make flying to international destinations more accessible to our citizens, the minister said.

“This will help improve overall connectivity and spur trade, tourism and economic growth in the country,” Prabhu added. Under the scheme, the Assam government has committed to fund the subsidy amount of Rs 100 crore per annum for three years.

ET reported about an UDAN scheme for international flights first in January. UDAN was launched in 2016 to provide affordable air travel at Rs 2,500 per hour of flight for people through subsidised ticket rates and to provide air connectivity to smaller towns.

According to the draft scheme for international flights, state governments will identify the routes and airline operators will assess demand on these routes and submit proposals for providing connectivity.