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UDAN bids for 43 airports, most airlines yet to agree on surcharge

UDAN bids for 43 airports, most airlines yet to agree on surcharge

TIL Desk/Business/New Delhi- Even as uncertainty looms over the proposed levy for funding the ambitious regional connectivity project in aviation — Ude Desh ka Aam Nagrik or, simply, UDAN — the government says the scheme would see its first flight next month and put 43 new airports on the map.

According to sources in the aviation ministry, only State-owned Air India and private carrier AirAsia India have agreed to pay the surcharge. “They have started levying the surcharge on their air tickets. Other airlines are yet to do, as the case is sub judice,” said an official. Minister of state Jayant Sinha said the ministry was in discussion with the airlines. Funding by other means could also be considered.

Bids have been received for 190 routes under the scheme, for several new airports, including Bhavnagar, Cooch Behar, Jamshedpur and Jalandhar. The scheme aims to promote low-cost flying between these cities, capping the fare at Rs 2,500 for an hour’s flight by subsidising airline loss through a regional connectivity fund.

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