(FE)
The ministry of civil aviation is trying to make certain changes in the regional connectivity scheme — before the second round of bidding — to make it more investor- and business-friendly. Sources said the proposed changes deal with exclusive rights to fly on the commercially lucrative routes, added benefits for airlines operating on the routes in smaller towns and backward regions, and acquisition of aircraft by the regional airlines. The ministry is satisfied with the response to the first round of bidding, but it still wants to change certain things to make the scheme more robust, investor-friendly and beneficial for people residing in the smaller towns and cities.
In the second round of bidding and the subsequent ones, the ministry wants to do away with the provision of granting exclusive rights to the airline which will operate in commercially lucrative sectors. Other airlines in the subsequent bids will be able to operate on the same route. Right now successful bidders have exclusive rights for three years. On the other hand, for the non-lucrative sector, exclusive rights will be increased from the current three years to five or six years.
