Source: The post is based on the article “Ministry of Civil Aviation Launches UDAN 5.0” published in PIB on 22nd April 2023
What is the News?
The Ministry of Civil Aviation has launched the fifth phase of the Regional Connectivity Scheme (RCS)-UDAN (Ude Desh Ka Aam Nagrik).
What is the UDAN Scheme?
What is UDAN 5.0?
UDAN 5.0 aims to raise the momentum, connect new routes and bring us closer to the target of operationalizing 1000 routes & 50 additional airports, heliports and water aerodromes in the near future.
Key features of UDAN 5.0:
UDAN 5.0 focuses on Category-2 (20-80 seats) and Category-3 (>80 seats).
Viability gap funding(VGF) will be provided at a 600 km stage length for both Priority and Non-Priority areas which were earlier capped at 500 km.
Airlines can now propose routes they want to fly under the UDAN 5.0. The move replaces the previous system in which the Ministry predetermined the routes airlines could operate on.
The airlines would be required to submit an action/business plan after 2 months from the issuance of LoA wherein they submit their aircraft acquisition plan/availability of aircraft, crew, slots, etc. at the time of the Technical Proposal.
The same route will not be awarded to a single airline more than once, whether in different networks or in the same network.
Exclusivity will be withdrawn if the average quarterly Passenger Load Factor(PLF) is higher than 75% for four continuous quarters, to prevent exploitation of the monopoly on a route.
Airlines must start up their operations no later than four months after the route has been awarded; the previous limit was six months.