With a proactive and close collaboration between government entities, regulatory authorities and operators, there's a high probability that this initiative may widen the aviation grid of India
GN Bureau | January 16, 2017
As many as 44 high potential RCS airports have been identified from among 414 airfields available in India, said a report.
The FICCI-KPMG report has presented over 370 possible destinations from the high-potential RCS airports, the projected financial statements for four aircraft types and suggestions for further improvement of the scheme. The proposed airports and routes are indicative in nature and potential operators shall have to undertake a thorough due-diligence before taking any business decision.
With a proactive and close collaboration between government entities, regulatory authorities and operators, there's a high probability that this path-breaking initiative may widen the aviation grid of India; bring in additional traffic, revenue and profits; create direct and indirect employment; and facilitate economic development in the interiors of India.
Read: Regional Connectivity Scheme (RCS) for Civil Aviation: Roadmap for sustainable operations
India's Regional Connectivity Scheme (RCS) was introduced as part of the National Civil Aviation Policy in June 2016 and was formally launched in October 2016. The scheme provides a unique opportunity to take flying to the masses by way of fiscal incentives, infrastructure support, procedural simplifications and monetary subsidies.
The report said that RCS is highly profitable for a 48 and 78 seater aircraft operator. The key challenge would be to identify routes that provide the presumed seat factors.
It added that thanks to a growing economy, fall in ATF prices and a heavily under-penetrated market, Indian aviation is growing at a very high rate of over 20% per annum. A significant part of this growth is coming from people in the interiors of India who today have to travel by road or rail to reach the nearest hub airport.
India has a bold ambition of becoming the third largest aviation market by 2020 and the largest by 2030. This will require aviation to be taken to the interiors of India, by way of affordable and innovative solutions.
Read: Rough weather ahead for UDAN
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