PM Modi launches first flight under UDAN scheme from Shimla to New Delhi

Prime Minister Narendra Modi on Thursday launched the first UDAN flight from Shimla to New Delhi on Thursday. The flight will be operated by Alliance Air, a regional arm of national airline Air India.

The Prime Minister also handed out boarding passes to all passengers boarding the first UDAN flight. Senior officials of the aviation ministry, Air India and Airports Authority of India were also be present at the event.

But what exactly is UDAN? Listed below are five things you need to know about this new initiative.

Q1) What does UDAN stand for?

The word UDAN is an acronym for ‘Ude desh ka aam nagrik’, which essentially means all common people can now use air travel as a means for travelling. The scheme is intended to make flying more affordable for common people and to connect over 45 unserved and under-served airports across the country. The UDAN Scheme is a key component of the National Civil Aviation Policy (NCAP) which was released on June 15, 2016.

Q2) Will all tickets on flights be subsidised under the UDAN scheme?

No. But 50 percent of all seats on each flight will now have a cap of Rs 2,500 per seat, per hour. The government has also decided to extend the subsidy to the operators flying on these routes in the form of viability gap funding. According to the prime minister’s office, airfare for a 1-hour journey of approximately 500 km on a fixed wing aircraft or for a 30-minute journey on a helicopter would be capped at Rs 2,500.

Q3) Which are the places being connected under the UDAN scheme?

Flights under the UDAN scheme would connect airports spread across more than 20 states and union territories including Punjab, Uttar Pradesh, Madhya Pradesh, Maharashtra, Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Tamil Nadu and Puducherry. The airports that will be connected to each other under the scheme include Shimla, Bhatinda, Neyveli, Bilaspur, Cooch Behar, Nanded and Kadapa.

Q4) Which are the airlines operating under this scheme?

Under the UDAN scheme, five airlines will operate on 128 routes, connecting a total of 70 airports, including 43 unserved and underserved ones. The airline companies operating under the scheme are Air India-subsidiary Airline Allied Services, SpiceJet, Air Deccan, Air Odisha and Turbo Megha.

Q5) What is in it for the airlines operating under UDAN?

Under UDAN, airlines would be extended viability gap funding, for which money is partly raised by levying up to Rs 8,500 on flights operating in major routes like Delhi and Mumbai. The viability gap funding amount is estimated to be around Rs 205 crore per year for airlines picked in the first round of bidding. It would be in place for three years for the concerned airlines from the date of starting operations on a particular UDAN route. The UDAN scheme also provides for various benefits including no airport charges and three-year exclusivity on the routes.