PM Modi's Rs 2,500 flight ticket plan: The devil in the details

The aviation minister Pusapati Ashok Gajapathi Raju formally launched the UDAN (Ude Desh ka Aam Nagrik) scheme that promotes regional connectivity and makes flying affordable for common man. The key highlight of the scheme is that airfares will be capped at Rs 2,500 for one-hour flights on regional routes. The intent of the government is to fly 300 million domestic passengers by 2022 from 85 million in 2015/16. The target looks ambitious; and hence, the capping of fares is necessary.