Regional Connectivity scheme: Fares for one-hour flight capped at Rs 2,500

Minister of Civil Aviation Ashok Gajapathi Raju on Friday announced new rules for capping of air fares at Rs 2,500 for one-hour flights that connect an unserved airport.

"Today, we have given shape to the Hon'ble Prime Minister's Vision of Regional Air Connectivity in India," civil aviation minister wrote in a tweet.

As per new rules, passenger fares for flight journeys from unserved and underserved airports will be capped at Rs 2,500 per hour of flying. Fares for other durations will be priced proportionately.

Under this scheme, helicopter operations in remote, hilly, island and security sensitive areas with a fare cap of Rs 2500 for a 30 minute flight.

The government will also offer concessions to the airlines flying on such routes.

#RCS Central Govt major concessions - 2% excise on VAT, Service tax at 1/10th the rate and liberal code sharing for RCS airports

- Ashok Gajapathi Raju (@Ashok_Gajapathi) July 1, 2016

Last month, the government released National Civil Aviation Policy 2016 with the aim to take flying to the masses by making it affordable and convenient.