Ministry/Department: Ministry of Civil Aviation
Aim : The RCS aims to boost air travel in Tier II and Tier III cities. Its objective is to make flying affordable for the masses, to promote tourism, increase employment and promote balanced regional growth.
Scheme:
- Under RCS, the airlines will connect to small towns with flights of about 1 hour capped at Rs 2500.
- The centre will compensate for the losses by subsidizing the airlines flying on regional routes so that they can charge Rs 2500 to passengers for one hour flight. This is also known as viability gap funding (VGF)
- The ratio between centre to state of this VGF will be 80:20
- The AAI is the implementing authority of the scheme.