The government today hoped that the new civil aviation policy will ensure better viability gap funding which will result in improved connectivity of smaller airports by airlines operators and benefit the passengers.
Responding to supplementaries in the Lok Sabha during Question Hour, Civil Aviation Minister A Gajapathi Raju said the funding was to be provided by the Centre as well as the state governments on a 80:20 ratio and 90:10 ratio for Northeastern states.
He said revenue from passengers as well as viability fund will help the airline operators. “I hope that the scheme succeeds,” he said.
It was pointed out to the ministers that certain airlines in the recent past have stopped services to some smaller airports citing lack of revenue.
“The National Civil Aviation Policy, 2016 envisages to take flying to the masses by making it affordable and convenient. To promote this objective, the policy provides for regional connectivity scheme by way of upgradation/development of no-frills airports and viability gap funding to the airlines operating to these airports based on demands,” he Raju said in his written reply.
Responding to a question on rising airfares, he said if the government puts a cap on ticket fares, then the floor price will also increase.