India: New Delhi issues draft policy for international route subsidies

The Indian govt may extend its Regional Connectivity Scheme (RCS) to international destinations, particularly in Southeast Asia, as it looks to improve international air connectivity. In a draft policy issued by New Delhi, the plan termed as International Air Connectivity Scheme (IAC) calls for subsidised airfares that will initially connect Guwahati in the Northeastern state of Assam to Dhaka, Kathmandu, Yangon, Kuala Lumpur, Singapore and Bangkok, as well as Vijayawada in the Southeastern state of Andhra Pradesh to Singapore and Dubai. Under the IAC, subsidies are calculated based on the unsold number of passenger seats on the proposed aircraft to be deployed. Nonetheless, the ministry of civil aviation acknowledges that different aircraft types may be operated for the same stage lengths and have different operational costs. <br/>