options. Currently, the commuter is willing to pay a significant premium for the time saved by air travel compared to traditional ground transport. If potential eVTOL users are willing to pay INR 1,500 for a 20-kilometre trip and INR 2,000-3,000 for longer distances, such as 30-kilometre airport trips, other factors will influence the ideal pricing. It is important to understand where the value of this technology lies both in urban and rural settings in India, as well as the different mechanisms that can be used to price AAM services. –Urban market willingness to pay: Early adopters are perceived as significantly more willing to pay due to time savings, so a value- based pricing strategy may work for this segment. This tier includes personalized or VIP services, including private or semi-private flights with on-demand scheduling. –Regional market willingness to pay: The purpose of introducing ASHA in regional India is to ensure that rural citizens have greater access to economic clusters, jobs and primary services such as healthcare. To ensure cost- consciousness, services can be subsidized through government schemes, such as the UDAN scheme, to incentivize fares and make them accessible to rural customers. This tier could focus on scheduled, shared air taxi services. –Dynamic pricing strategies: Most suburbs in urban India have catchments that house mid-income groups who use public transport extensively. In urban areas, dynamic pricing models, similar to ride-hailing apps, could be applied with the additional location reference point. Peak times and popular routes could influence higher prices, while off-peak travel and less-frequented route prices could be lowered to ensure wider coverage of citizens from all income groups. –Subscription (flexi-pass) models: A membership model could be an effective pricing strategy for urban users, particularly those travelling to business districts or neighbourhoods. This could include subsidized rides for a fixed monthly or yearly fee, targeting regular users travelling daily. –Partnership with local authorities: Pricing strategies can be built around partnerships with local governments and businesses in rural areas. For instance, reduced fares can be offered for essential services, such as medical transport and agricultural logistics. Bulk pricing for businesses that require mass cargo transit between rural and urban areas could also be considered. Subsidized models through public schemes: The pricing strategy should include value gap funding to support rural connectivity, similar to the current UDAN scheme for air travel. This allows the service to penetrate deeper into rural areas, supplementing existing transport with reduced fares or government-subsidized services. These subsidies can encourage the adoption of ASHA vehicles while ensuring profitability for operators. Government-backed initiatives (such as UDAN) that currently focus on affordable regional air travel could be expanded to support AAM deployment in regional India as well as suburban and arterial corridors in urban India. This would promote greater connectivity and stimulate economic activities, particularly in sectors like tourism and agriculture, where improved mobility can open new markets. In this context, AAM could serve as a catalyst for rural revitalization, bringing its benefits to underserved and geographically isolated regions. 27 Skyways to the Future: Operational Concepts for Advanced Air Mobility in India

Skyways to the Future 2024