The NDA government's Regional Connectivity Scheme, that promises to subsidise regional air connectivity, is set to get a leg up starting June 2017. Air India had already placed an order for 10 small aircraft to kick start the national carrier's sub-regional footprint, apart from maintaining a large fleet for overseas connectivity.
Confirming the development, Ashwani Lohani, Air India chairman, said that the national carrier was eager to start the regional connectivity in phases. “We have already placed order for 10 ATR aircraft for the regional connectivity scheme,” Lohani told reporters on Wednesday.
“The deliveries of these ATRs will start from April onwards. By June, we will be ready,” said Lohani, assuring that the national carrier will not be far behind in meeting the government's 2017 deadline for starting the regional connectivity scheme that promises one hour flight for a fare of Rs 2,500.
The air fare, matching that of a second class AC travel by train, is the brainchild of Prime Minister Narendra Modi, and has featured prominently in the government's new Civil Aviation Policy.
Airlines have been asked to participate in this scheme which will enable them to receive government support on every subsidised ticket sold.
The scheme is yet to take off, and conditions such as new infrastructure development requirement are yet to be met by the government. The aviation ministry had sought a Rs 200 crore fund to revamp old air-fields and airports of the second world war era.
“There is also a need for regional connectivity between foreign destinations. These possibilities will also be explored post-June,” said Lohani. “We had suggested that the fares for travel in the scheme should be based on time of flight rather than a fixed slab,” he said.
The Air India chairman is hoping to make the national carrier report record profits by end of the upcoming festive and vacation season. According to senior Air India officials, aware of the development, the national carrier is likely to refrain from making any costly purchases and will lease the aircraft from a Malaysian company.
