Question : Low Cost Air Services

(a) whether the Ministry proposes to bring a new policy for low cost air services or low cost air travel for the middle class people and if so, the details thereof;

(b) whether this new policy would bring down the fare charged on main air routes and if so, the details thereof;

(c) the details of airlines shortlisted under UDAN scheme and number of flights operated by them, airport-wise;

(d) the regions covered in Bihar and North Eastern States under regional air connectivity scheme and new airports/airstrips being constructed there;

(e) whether the Government proposes to given any additional incentives under the scheme, if so, the details thereof; and

(f) whether any scheme has been implemented by the Government in the country for promoting skill development in the civil aviation sector, during the last three years and if so, the details thereof?

The Minister of State in the Ministry of CIVIL AVIATION
(Shri Jayant Sinha)

(a): The Ministry of Civil Aviation (MoCA) launched Regional Connectivity Scheme (RCS)-UDAN (Ude Desh ka Aam Nagrik) scheme on 21-10-2016 for providing connectivity to un-served and under-served airports of the country. The primary objective of RCS is to facilitate / stimulate regional air connectivity by making it affordable. RCS-UDAN is a demand-driven scheme, where airline operators undertake assessment of demand on particular routes.;

(b): Ministry of Civil Aviation has targeted an indicative airfare of Rs 2500 per passenger approximately, indexed to inflation, for a significant part of the capacity of the aircraft for a distance of 500kms to 600 kms. on RCS routes (equivalent to about one hour of flight).;

(c): Airports Authority of India (AAI), the Implementing Agency has issued Letter of Award for 27 proposals of five Selected Airline Operators namely Alliance Air, Spicejet, Air Deccan, Air Odisha and Trujet. The list of RCS routes commenced is attached at Annexure-I.;

(d): The list of airports of Bihar and North Eastern Region included in the tentative list of under-served & un-served airports of the Scheme document is attached at Annexure-II. The Government has approved the proposal for revival of 50 unserved/ under-served airports/airstrips of the State Governments, Airports Authority of India and Civil enclaves at an estimate cost of Rs. 4500 crores. However, the revival of airstrips / airports is ''demand driven'', depending upon firm commitment from airline operators as well as from the State Government for providing various concessions.;

(e): Regional air connectivity is envisioned under RCS by supporting airline operators through (i) concessions by Central Government, State Governments and airport operators to reduce the cost of airline operations on regional routes and (ii) financial support (Viability Gap Funding or VGF).;

Central Government, State Governments and airport operators will be inter-alia providing following concessions under RCS:

1.Central Government :

i) Excise Duty at the rate of 2% on Aviation Turbine Fuel (ATF) for Selected Airline Operators at RCS Airports for RCS Flights for a period of three years from the date of notification of this Scheme.

ii) Freedom to enter into code sharing arrangements with domestic as well as international airlines pursuant to applicable regulations and prevailing air service agreements.

2.State Governments at RCS Airports within their States:

i) Reduction of VAT to 1% or less on ATF at RCS Airports located within the State for a period of ten years from the date of notification of this Scheme.

ii) Provision of security and fire services free of cost at RCS Airports

3. Airport Operators:

i) Airport operators shall not levy Landing Charges and Parking Charges

ii) Selected Airline Operators shall be allowed to undertake ground handling for their RCS Flights at all airports.

iii) Airports Authority of India (AAI) shall not levy any Terminal Navigation Landing Charges (TNLC) on RCS Flights.

iv) Route Navigation and Facilitation Charges (RNFC) will be levied by AAI on a discounted basis @ 42.50% of Normal Rates on RCS Flights.

In addition to above, Central Government and State Governments will provide VGF to the selected airline operators. It will be shared between Ministry of Civil Aviation and the State Government in the ration of 80:20 whereas for the States in North- Eastern region / Union Territories (UT''s) the ratio will be 90:10.;

(f): A tripartite agreement among AAI, National Skill Development Fund (NSD) and National Skill Development Corporation, for skill development project has been signed. Under the MoU, AAI shall contribute Rs. 1.25 Cr for the year 2016-17 and Rs. 2 Crores each for two years i.r 2017-18 & 2018-19.;
;

2360 number of candidate shall be provided aviation related training over a period of three years. Moreover, AAI has its own training center one - Civil Aviation Training College, Bamrauli Allahabad, Indian Aviation Academy, Gurgaon, New Delhi and Fire Training Center at Delhi & Kolkata where AAI develops all levels skills related with aviation