With the ambitious regional air connectivity scheme taking wings, authorities have set up a trust for disbursing viability gap funds to the participating airlines. Airports Authority of India (AAI) is the nodal agency for the scheme -- UDAN (Ude Desh ka Aam Naagrik) -- that aims to connect un-served as well as under-served airports and make flying affordable for the masses. As at least half of the seats in UDAN flights are to be offered at subsidised fares, the participating carriers would be provided a certain amount of Viability Gap Funding (VGF) -- an amount shared between the Centre and the state concerned. AAI Chairman Guruprasad Mohapatra said a trust has been set up to disburse the VGF to the carriers operating under UDAN. The trust, headed by the AAI chief, also has officials from the Civil Aviation Ministry and the national airports operator to administer it.

Source: dna May 12, 2017 11:26 UTC