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Context:
In the last session of Parliament, the government acknowledged that only one-fourth of the air routes granted under the Regional Connectivity Scheme (RCS) or UDAN (Ude Desh ka Aam Nagrik- loosely translated to ‘every common man flies’) have become operational.
Flights have commenced so far on merely 186 out of 705 RCS routes it had offered to airline operators so far.
Civil aviation is a Central subject and one that barely got significant attention from the States until recently.
It is evident from the fact that very few States in India have active civil aviation departments.
This is also due to the reason that States have had a passive role, invariably, having had to look up to the Central government for the development of airports and enhancing air connectivity.
However, in the last four years, the situation has changed considerably:
The cooperation of States is seen as a major factor in the growth of the civil aviation sector. The Regional Connectivity Scheme, UdeDeshkaAamNaagrik (UDAN), has become a game changeras this flagship programme has a built-in mechanism to develop stakes of State governmentsin the growth of the sector.
The government had launched the Udan (Ude Desh ka Aam Nagrik) scheme in October 2016 to stimulate regional air connectivity and make air travel affordable to the masses.
Aviation minister launched the government’s regional connectivity scheme Udan is not only “crucial” for the growth of the North-eastern region but also provide “affordable” aviation to the people.
International UDAN or Overseas UDAN.:
International UDAN is an extension of the domestic UDAN scheme that rolled out last year.
Key policy interventions to promote Airlines in India:
Connecting the Unconnected areas:
However, to attract airlines from regional to remote connectivity, further interventions are necessary.
Considering the infrastructural constraints and difficult terrain, small aircraft operators need to be encouraged.
Many a time, policy reluctance is observed considering the financial non-viability of the models to connect remote areas using smaller aircraft and helicopters. But air connectivity to these difficult regions is indispensable.
Areas which cannot be connected meaningfully by road or rail have to be linked by air. No doubt, they will be cost-effective if the economic analysis is factored-in.
For example, travel from Dehradun to Pithoragarh (both in Uttarakhand) by road takes 16 hours and communication is almost cut-off in the rainy season.
Air connectivity would not only bring down travel time but also be a boon in emergencies. This is also true for northeast India, the islands and also hilly States.
Convergence is an element in governance which is often overlooked due to a compartmentalisation in implementation.
States may converge their relevant schemes relating to tourism, health, and insurance for supporting air connectivity to supplement the objectives of regional connectivity.
Another area is in the development and management of airports:
Linking the hinterland:
Third, States and the Central government can play a crucial role in supporting airlines to develop air services in the remote regions.
To reduce operational cost of airlines and airport operators, incentives from State governments have been sought: some in the form of financial support such as VAT reduction; sharing of viability gap funding with airlines, and non-financial incentives such as providing security and fire services free of cost to airport operators.
Under UDAN, some success stories have motivated States to announce innovative approaches and policies in support of airlines.
Conclusion:
An International Civil Aviation Organization (ICAO) study has shown that the output multiplier and employment multiplier of civil aviation are 3.25 and 6.10, respectively.
Empirically, this has been proved in many airports within India where the connectivity has changed the economic landscape in a positive way.
Currently the penetration of the aviation market in India stands at 7%. There is potential to be among the global top three nations in terms of domestic and international passenger traffic.
For this States need to create a conducive business environment to facilitate the strong aspirations of a burgeoning Indian middle class to fly at least once a year.
It would boost ticket sales from the present level of eight crore domestic tickets. Developing airports, incentivising airlines and pooling resources of both the Union and State governments can accelerate the harmonised growth of the Indian civil aviation sector which would be equitable and inclusive.
By: Priyank Kishore ProfileResourcesReport error
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