The scheme is expecting to take its first flight in January next year. Reports stated that the government will cap the airfares at Rs.2,500 for at least half the seats for a journey lasting around 500 kilometres.
A FICCI report has identified 44 underserved and unserved airports around India as having "high potential" for operations under the ambitious Regional Connectivity Scheme (RCS) for civil aviation, UDAN.
UP has four potential RCS destinations.
Maharashtra, Rajasthan, West Bengal and Assam have three each while Arunachal Pradesh, Meghalaya, Bihar, Karnataka, Himachal Pradesh, Gujarat, Chhattisgarh have two each.
The Udan scheme has made it easier for airlines to start flights on new routes. Earlier, high costs necessarily leading to losses in the first few years limited companies' plans. Now, viability gap funding, lower fuel prices and reduced airport charges have helped carriers.