UDAN 5.0 launched by Civil Aviation Ministry
UDAN 5.0, The Regional Connectivity Scheme, also known as UDAN, has entered its fifth stage, with the goal of improving connectivity to the nation’s rural and regional communities. The Ministry of Civil Aviation (MoCA) on April 21 began the process of accepting airline proposals for a number of routes under this fifth round of bidding for its regional connectivity scheme UDAN.
UDAN 5.0 launched by Civil Aviation Ministry: Key Points
- There are no restrictions on the distance between the origin and destination, and the stage length cap of 600 km is waived, according to a tweet from the Ministry of Civil Aviation.
- Only aircraft operations of Category 2 (20–80 seats) and Category 3 (>80 seats) will be eligible.
- There are no restrictions on the distance between the flight’s origin and destination, and the earlier stage length cap of 600 km is waived.
- The viability gap funding (VGF) to be provided will be capped at 600 km stage length for both Priority and Non-Priority areas, which was previously capped at 500 km.
- Only the network and individual route proposals made by the airlines will be taken into consideration, and the airlines will be required to submit an action/business plan two months after the Letter of Authorization (LoA) has been issued, in which they will detail their strategy for purchasing aircraft and their capacity for hiring crew, using slots, etc. at the time of the technical proposal.
- The same route cannot be given to the same airline more than once, either within the same network or across different networks.
- Exclusivity will be withdrawn if the average quarterly passenger load factor [PLF] is higher than 75% for four consecutive quarters, to prevent the monopoly on a route from being exploited.
UDAN 5.0 launched by Civil Aviation Ministry: About Performance Guarantee
- For each month of delay up to four months, 25% of the Performance Guarantee will be forfeited as a further incentive for rapid operationalization.
- An enforceable promise to provide a potential contractor with the resources they need and to take on all of their contractual duties is known as a performance guarantee.
- The Ministry added that after receiving the route award, airlines would need to start operating within four months.
- This deadline was formerly set at six months.
- In order to promote rapid operationalization of routes under the Scheme, it was also added that a list of airports that are ready for operation or will soon be ready for operation has been included in the scheme.
- Novation procedures for routes between operators are streamlined and encouraged.
- Novation is the process of replacing an existing contract with a new one after the contracting parties come to an agreement.
UDAN has shown to be the lifeblood of numerous regions, many of which are now well connected to other areas of the country. We will get closer to the goal of operationalizing 1,000 routes and 50 additional airports, heliports, and water aerodromes in the near future with the help of this new and improved version of the plan, which will increase momentum and connect new routes.