Low rates of regional connectivity scheme could actually mean high fares for major journeys

The government has announced a new aviation policy, while also proposing a new regional connectivity scheme that will most likely attract air charter companies and other non-scheduled operators so that they can launch regional operations and connect local regions via air. However, once this scheme is implemented, chances are that major journeys between metro cities could cost more.

For the scheme, the Indian government is planning to revive a total of 160 airports and airstrips, as announced by finance minister Arun Jaitley while presenting Budget 2016. Because the fares for these regional operations are capped low by the government (at Rs 2500 for flights of about 1 hour) and wouldn't even cover costs, the carriers would have to put extra burdens on the pricing of major trunk routes such as Delhi-Mumbai.

This means that the burden of the schemes will ultimately be put on to the passengers of major routes that have more frequent flights operational.

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