Government unveils draft IAC scheme

The central government has unveiled the draft International Air Connectivity (IAC) scheme for extending the Regional Connectivity Scheme to international destinations. In this regard, state governments have been tasked with the identification of routes. Financial support in the form of subsidy will be provided by the respective state governments for which an international air connectivity fund will have to be created. However, the draft scheme stipulates that only those states that are committed to supporting airlines through the provision of subsidy will be able to offer connectivity under the IAC scheme. Further, only Indian carriers deploying over 70-seater aircraft will be eligible for funding under the scheme. The policy is expected to be finalised soon and is likely to be rolled out by end 2018.