• India
  • Apr 05

What is International Air Connectivity Scheme (IACS)?

• The ministry of civil aviation has launched the International Air Connectivity Scheme (IACS) scheme with an objective to enhance air connectivity from certain states of the country with selected international destinations to promote socio-economic growth. 

• This is also known as the UDAN International scheme.

• This scheme is supported by the state governments. The state governments of Assam, Manipur and Tripura have identified routes connecting Guwahati, Imphal and Agartala with selected international destinations like Bangkok, Dhaka, Kathmandu, Yangon, Hanoi, Mandalay, Kunming and Chittagong.

• The ministry has also proposed to connect Bhubaneswar with Singapore, Abu Dhabi and Bangkok.

• There are two international airports in the Northeast Region at Guwahati and Imphal which are operated by Guwahati International Airport Limited (GIAL) and Airports Authority of India (AAI) respectively. GIAL and AAI both have undertaken construction of New Integrated Terminal Building (NITB) and other associated works at their respective airports to improve services including, increase in passenger handling capacity.

What was the need for such a scheme?

• The National Civil Aviation Policy, 2016 (NCAP) envisions increasing the international ticketing to 20 crore by 2027. It also seeks to sustain and nurture a competitive market environment in the civil aviation sector.

• Some state governments felt that facilitating/stimulating international air connectivity would be desirable from a public policy perspective and may need financial support, at least in the initial period, to trigger participation of airlines. 

• State governments envisage direct scheduled flights to international destinations to promote socio-economic growth. It is in this context that the International Air Connectivity Scheme (IACS) was conceived for promoting international air connectivity between select destinations in the state and international destinations, as decided by the state governments.

• The operation of the scheme is proposed through a state government-led mechanism. State governments will identify the list of routes to be connected, airline operators will assess demand on the identified routes, submit proposals for operating/ providing connectivity on such routes, seek financial assistance while committing to certain minimum operating conditions.

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