Get set to fly at subsidised air fares to small cities soon

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New Delhi: Airports in smaller cities are likely to run operational soon as government has received 45 proposals from 11 bidders to initiate aviation services from around 190 airports on the regional route map.

Airports in cities like Jaisalmer, Ratnagiri, Dehradun, Shimla and Tirupati, so far not covered by airlines. are expected to start next month. 

Fares on these routes will be capped at Rs 2,500 for one-hour flights. The government will subsidise passenger fares on these routes through viability gap funding (VGF) to airlines along with a host of tax benefits and waiver of airport charges.

Modi government had announced Regional Connectivity Scheme called UDAN or Ude Desh Ke Aam Naagrik scheme in October 2016.