UDAN- Giving Wings to Common Man

By:Himanshu Panchal

UDAN-Ude Desh Ka Aam NaagrikThe Ministry of Civil Aviation took a major step on 21/10/2016 towards making flying a possible thing for the small town common man. The Civil Aviation Minister Shri P Ashok Gajapathi Raju launched this scheme namely UDAN at New Delhi. UDAN is an innovative scheme to develop the regional aviation market. The first flight will be started between delhi ans kolkata.

OBJECTIVE OD UDAN SCHEMEThe scheme UDAN will provide a win-win situation for all stakeholders.The citizens would find more job opportunity and will be also benefited of affordability, connectivity and more jobs.The BJP Govt would be able to expand the regional air connectivity and market.The state governments would gain the benefit of development of remote areas.It will enhance trade and commerce and more tourism expansion.For incumbent airlines there was the promise of new routes and more passengers while for and start-up airlines there is the opportunity of new, scalable business.Airport operators will also see their business expanding as would original equipment manufacturers.

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UDAN scheme will boost air travel between smaller cities, fares for one-hour flights will be capped at Rs 2,500. This scheme is likely to be launched in January, 2017. The UDAN scheme (an acronym for Ude Desh Ka Aam Naagrik or “helping the average Indian fly”) has been devised to increase connectivity. So far, two options have been discussed yet:–i) Government will charge 2% cess from passengers flying on profitable routes, orii) It will ask airlines to pay Rs. 8,000 every time they land at an airport in a major city or metro.

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Under this yojana traveler can buy tickets at Rs.2500/- only from 9 seats to maximum 40 seats can be booked by single user under this scheme.The rate 2500/- is not for the entire seats available in the flights. If the traveler is taking the scheme then only 50%of the seats in a flight will belong to he scheme. The rest of the seats will be cost as per the market rate.2500/- will be the ceiling price under this scheme. No other charges will be levied on this price while availing this scheme. This price will be valid only for the one- hour flights.

Impact on stakeholder

1) For incumbent airlines there was the promise of new route and more passenger while for start-up airlines there is the opportunity of new, scalable business. So win-win for every stakeholders.

2) Airport operator will also see their business expanding as would original equipment manufacturers. So it will also a push to our manufacturing sector as well as make in India.

3) Regional connectivity will enhance market and cheap fare for passenger will enhance tourism sector.

4) Airport operator will not impose any landing and parking charge and terminal navigation landing charges.

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