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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