Consider the following statements about ‘Ude Desh ka Aam Nagrik (UDAN)’ scheme :
- 1. It is an innovative scheme to develop the regional aviation market.
- 2. It creates affordability yet economically viable and profitable flight on regional routes.
Which of the statements given above is/are correct?
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC NDA-2 – 2022
Statement 1: “It is an innovative scheme to develop the regional aviation market.” This is correct. The primary objective of UDAN is to make air travel accessible and affordable for common people by stimulating regional air connectivity, thereby developing the regional aviation market.
Statement 2: “It creates affordability yet economically viable and profitable flight on regional routes.” This is also correct. The scheme aims to make flights affordable for passengers through measures like fare caps on a certain percentage of seats. To ensure economic viability for airlines operating on potentially less profitable regional routes, the scheme includes a Viability Gap Funding (VGF) mechanism, where the government provides financial support to cover operational costs that cannot be met by passenger fares alone. This mechanism helps make the routes economically viable for operators.