Alliance Air first to launch under India's RCS

Alliance Air will be the first airline to commence operations under India's Regional Connectivity Scheme (RCS), known as Ude Desh Ka Aam Naagrik (UDAN). The Air India subsidiary will launch flights from Bathinda to Delhi Int'l later this month, reports Live Mint.
“We are looking to start operations from Bathinda this month," said Alliance Air CEO CS Subbiah. "It would be followed by Shimla and Indore. This should happen quickly. The rest should be operational by June."

Alliance Air was awarded a total of fifteen routes under the scheme, which aims to increase the penetration of air travel among India's working and middle classes by subsidizing flights to the country's 400+ underserved Tier II and III cities. Financing for the flights is through a system of financial incentives including Central and State government concessions and Viability Gap Funding (VGF). The VGF is partly funded through a levy on routes between Tier I cities, such as Delhi, Mumbai Int'l, Chennai, Hyderabad Int'l, Bangalore Int'l and Kolkata.

Subbiah expects the initial load factor on this first route to be 60% at the outset, reaching 80% within 18 months. The airline is acquiring more turboprop planes to expand its fleet which currently comprises two ATR42-300s and eight ATR72-600s.

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