Subsidised flights to small cities likely by next month

Subsidised flights to smaller cities like Jaisalmer, Ratnagiri, Dehradun, Shimla and Tirupati are expected to start next month, with the government receiving bids for as many as 190 routes so far not covered by airlines.

A total of 11 players, some of which will be starting operations for the first time, have put in bids for these route under the Regional Connectivity Scheme (RCS), Minister of State for Civil Aviation Jayant Sinha said on Thursday.

Fares on these routes will be capped at Rs 2,500 for one-hour flights, as the government will provide viability gap funding (VGF) to airlines along with a host of tax benefits and waiver of airport charges. The government announced RCS, also called UDAN or Ude Desh Ke Aam Naagrik scheme, last October.