Ministry of Civil Aviation holds crucial consultations with stakeholders of the Regional Connectivity Scheme
Aug 02, 2016: The senior officials of the Ministry of Civil Aviation, organised broad and in-depth consultations with the stakeholders of the new Scheme in the capital on July 29, following the release of the Draft Regional Connectivity Scheme recently.
The primary objective of the Regional Connectivity Scheme is to facilitate and stimulate regional air connectivity by making it affordable. The Scheme proposes: concessions by Central & State Governments and airport operators and fiscal (viabilility gap funding or VGF) support to promote affordability of regional air connectivity.
The key issues discussed during the deliberations were as follows: bidding parameter to be considered while inviting proposals for interested airlines operations under the Scheme; exclusivity to be granted to selected airline operators for operations under the scheme; airfare caps proposed under the Scheme; VGF Caps and PLF based tapering of VGF proposed under the Scheme; minimum performance specifications to be adhered to by selected airline operator; provisions enabling easy entry and exist; RCS applicability and overall implementability of RCS.
Representatives of State Governments expressed their willingness to cooperate in giving support to airlines to operate from airports within their states. However, states from the North East wanted the Centre to give 100 percent financial assistance to the scheme.
Representatives from Airlines wanted assistance under the Scheme to be extended beyond period of three years. Some Stakeholders also wanted flexibility with regard to the distance stipulated in the Draft. They wanted the minimum distance of 200 kilometre and maximum distance of 600 kilometre to be decided on a case to case basis.
Jayant Sinha, Minister of State for Civil Aviation, said, “The Regional Connectivity Scheme is in pursuance of the Government’s objective of taking development and infrastructural facilities to the common man in all parts of the country.”
R.N. Choubey, Secretary, Civil Aviation, said that, the ministry had come with an open mind and will try to address the concerns of the various Stakeholders wherever possible. He was hopeful that the Regional Connectivity Scheme should take final shape by mid August.
Apart from senior officials of Ministry of Civil Aviation, the meet was attended by the following Stakeholders : Ministers and senior officers from the State Governments/UTs, airport operators, national airlines, regional airlines and non-schedules operators, airline associations, helicopter operators and their association including Pawan Hans, RWSI, aircraft manufactures, regulatory agencies like DGCA, AERA, BCAS and Industry associations.
Photo: Jayant Sinha briefing the press on Regional Connectivity Scheme, in New Delhi on July 29, 2016. R.N. Choubey is also seen.
