AAI Current Affairs

AAI receives 45 initial bids under Regional Connectivity Scheme

The Airports Authority of India (AAI) has received 45 initial bids from 11 parties to fly routes under the Regional Connectivity Scheme (RCS) launched by the Union Ministry of Civil Aviation.

The initial bid proposals covers more than 200 routes and as many as 65 airports, 52 of them not served by any airline and 13 under-served airports. Now, Government has invited counter-bids against these initial proposals.

After that, these routes will be awarded to bidders who quote the lowest Viability Gap Funding (VGF) requirement against the routes under the RCS.

About Regional Connectivity Scheme (RCS)

  • The RCS aims to boost air travel in Tier II and Tier III cities by capping fares at Rs 2,500 per one hour flight. The AAI is the implementing authority of the scheme.
  • Its objective is to make flying affordable for the masses, to promote tourism, increase employment and promote balanced regional growth.
  • As per the scheme, the Union Government will subsidise the losses incurred by airlines flying out of dormant airports to allow airlines to charge Rs. 2,500 for an hour’s flight to passengers.
  • About 80% of the subsidy will be collected by charging a levy of up to Rs. 8,500 on each departing flight of domestic airlines and the rest 20% will come from the respective state governments.

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Union Cabinet gives nod to Civil Aviation MoU between India and Singapore

The Union Cabinet has given its ex-post facto approval for signing a Memorandum of Understanding (MoU) between India and Singapore on cooperation in the field of civil aviation.

The MoU was signed in November 2015 between Airports Authority of India (AAI) on behalf of Union Government and Singapore Cooperation Enterprise (SCE) on behalf of Government of Singapore) during Prime Minister’s visit to Singapore.

Key facts

  • Objective of MoU is to establish mutual cooperation in the field of civil aviation between both countries.
  • It will cover airports of Jaipur and Ahmedabad to begin with cooperation and later will be extended to other airports with mutual consent.
  • The include collaboration in Civil Aviation Sector between both countries will be in the areas of (i) Master-planning and design (ii) Commercial development (iii) Traffic development Training and development (iv) Service quality improvement (v) Maintenance, repair and overhaul (vi) Cargo handling and Management (vii) Operation and management.

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