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7 out of 10 seats sold on flights to smaller cities
Why in news?
- Under the regional connectivity scheme (RCS) or UDAN (Ude Desh Ka Aam Nagrik) the government had set up a low-cost flying scheme to make air travel affordable and boost domestic traffic to provide for inclusive growth.
- According to data accessed under the RTI, for every 10 seats available under this scheme, as many as seven were grabbed by passengers since its launch last year.
- This indicates the growing demand for flights to smaller cities.
Key Points
- Under UDAN, which aims to take flying to the masses and enhance air connectivity to Tier-1 and Tier-2 cities, two rounds of bidding have taken place so far.
- Under the scheme eight airlines have started flights on 96 routes out of a total of 428 routes that were awarded to 17 airlines and helicopter operators. But helicopter services are yet to commence.
- Airline operators are required to set aside half of the total aircraft capacity for cheaper fares which are offered at the subsidised rate of ₹2,500 per hour of flight.
- The airlines in return are compensated by the Centre and the respective State government.
- Seat occupancy, also known as passenger load factor, is an indicator of demand on a particular route.
- Analysis of data sought obtained through RTI shows that as many 7.5 lakh seats were made available for sale by eight airline operators, out of which 5.24 lakh seats were sold between the first flight under the scheme in April last year and until August 1st, 2018.
Source
The Hindu