AirAsia India (I5, Chennai) is considering participating in the Indian government's Regional Connectivity Scheme (RCS) a senior airline executive has told India's PTI news agency.

Speaking on condition of anonymity, the official confirmed that the RCS's various participation options are currently being studied with particular emphasis on which routes could be served using the LCC's fleet of A320-200s. A positive decision will, however, depend on the chosen route's commercial viability.

Unveiled last month, the RCS programme aims to increase connectivity to India's 400+ underserved Tier II and III cities through a system of financial incentives including Viability Gap Funding. Subsidies to cover additional costs on fares capped at INR2,500 (USD36.45) will be raised through the taxation of flights operating on the country's main trunk routes.

Thus far, at least twenty certified operators including Deccan Charters (Bangalore Int'l) and Air India (AI, Mumbai Int'l) have reportedly submitted proposals to the government ahead of a December 2 deadline. Aviation Minister Ashok Gajapathi Raju has said he hopes to have the scheme's first commercial flight in service on January 1, 2017.