MoCA, Puducherry and AAI sign MoU for regional connectivity

The Ministry of Civil Aviation, Puducherry Government and Airports Authority of India have signed a tri-partite Memorandum of Understanding (MOU) for the Regional Connectivity Scheme thereby initiating the collaborative partnership. The MOU was signed at New Delhi in the presence of Jayant Sinha, Minister of Civil Aviation for State; V. Narayanasamy, Chief Minister of Puducherry, and Malladi Krishna Rao, Minister of Tourism and Civil Aviation of Puducherry,. Under the MoU, the State Government of Puducherry has formally agreed to provide the concessions required from the State Governments in the Regional Connectivity Scheme. The MoU is signed by Manoj Parida, Chief Secretary, Puducherry; Usha Padhee, Joint Secretary, Ministry of Civil Aviation and A.K. Dutta, Member, Airports Authority of India.
Speaking on the occasion, Sinha said that he hoped the subsidies would attract airlines which also needed to find the appropriate aircrafts and pilots to service the regional sector. Narayanaswamy said that he was happy to cooperate in promoting the Regional Connectivity Scheme as it would improve the connectivity to Puducherry. The Ministry of Civil Aviation had earlier released the draft Regional Air Connectivity Scheme (RCS) for stakeholder consultation, with the twin objectives of promoting balanced regional growth and making flying affordable for masses. The RCS is the key component of the National Civil Aviation Policy which was released by the Ministry on 15th June 2016. The scheme, which would be in operation for a period of 10 years, envisages providing connectivity to un-served and under-served airports of the country through revival of existing air-strips and airports. This would be achieved through a financial stimulus in the form of Central and State government concessions, as well as Viability Gap Funding to the interested airlines to kick-off operations from such airports, so that the passenger fares are kept affordable. The fare for a one hour journey of appx. 500 km on a fixed wing aircraft or for a 30 minute journey on a helicopter would now be capped at Rs. 2,500, with proportionate pricing for routes of different lengths / duration.