With reference to UDAN (Ude Desh ka Aam Nagrik) Scheme, consider the following statements: 1. The main goal of the scheme is to promote low-cost airlines and expand flight options for passengers. 2. The scheme provides Viability Gap Funding (VGF) to airlines to bridge the gap between cost of operations and expected revenues. Which of the statement(s) given above is/are correct? |ForumIAS

Q. With reference to UDAN (Ude Desh ka Aam Nagrik) Scheme, consider the following statements:
1.The main goal of the scheme is to promote low-cost airlines and expand flight options for passengers.
2.The scheme provides Viability Gap Funding (VGF) to airlines to bridge the gap between cost of operations and expected revenues.
Which of the statement(s) given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B

Notes:

Explanation –

Statement 1 is incorrect. The primary objective of the UDAN Scheme is to make air travel affordable and accessible by enhancing regional connectivity, particularly to underserved and unserved airports. The main focus is on making air travel affordable for the common citizen and improving connectivity rather than specifically promoting low-cost airlines.

Statement 2 is correct. The UDAN Scheme includes a provision for Viability Gap Funding (VGF) to support airlines. This funding helps cover the difference between operational costs and expected revenue on less lucrative routes, making it financially viable for airlines to operate in these areas.

Source: The Hindu

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS