Blitz Bureau
NEW DELHI: The Government will extend financial support to airlines operating under the UDAN regional connectivity scheme from three years to five years in a phased manner to improve the viability of regional routes, Union Minister of Civil Aviation Ram Mohan Naidu said on July 16.
On the sidelines of a UDAN workshop, the minister told reporters that the revamped scheme — which has been extended for another 10 years — will also widen the eligibility criteria for airports to receive viability gap funding (VGF).
“Earlier, an airport was classified as unserved or underserved if it had fewer than seven flights a week. We have now increased that threshold to 14 flights a week, which will allow more routes to receive viability gap funding,” Naidu said.
Ram Mohan said the Government is expanding airport infrastructure at a rapid pace and is now focused on improving regional connectivity through policy changes.
“We are creating either a new terminal or a new airport every single month. Now we have to improve connectivity, and for that we have brought changes to the existing UDAN scheme,” he said.
The minister also announced operational and maintenance (O& M) support for airports in Tier-2 and Tier-3 cities that are struggling to break even because of low passenger traffic.
“Some airports are facing losses due to lower passenger volumes. The government will extend a helping hand by providing operational and maintenance support wherever airports are unable to meet their operational expenses,” he said.
