Another U Turn, 2500 Rs Per Ticket is not The Fixed Price Under UDAN Scheme
Airfares as well as the government subsidy for airlines under the regional air connectivity scheme will be revised every three months depending on inflationary trends.
The scheme UDAN (Ude Desh ka Aam Naagrik) provides for cap on air ticket prices and viability gap funding (VGF) for the participating carriers.
The Civil Aviation Ministry has said caps on air ticket prices and VGF under the scheme would be revised on a quarterly basis.
While airfares would be linked to inflation, VGF would be decided after taking into consideration inflation, cost of aviation turbine fuel and the rupee-dollar exchange rate.
UDAN, that seeks to connect un-served and under-served airports as well as make flying more affordable, kicked off with the first flight taking off last month from Shimla to ...