New civil aviation policy to make flying affordable and increase air connectivity

The new policy envisages a fare cap of Rs 2,500 on hour-long flights

GN Bureau | June 16, 2016


#Ashok Gajapathi Raju   #Civil aviation policy  
Ashok Gajapathi Raju, civil aviation minister
Ashok Gajapathi Raju, civil aviation minister

The union cabinet has approved the new National Civil Aviation Policy 2016 that aims to make flying more affordable and increase air connectivity. Hailing the new policy as a “game changer”, civil aviation minister Ashok Gajapathi Raju said that the country’s aviation sector is poised to become the world’s third largest by 2022.

The NDA government unveiled the draft of the policy in November 2014 and replaced it with another draft in October 2015.

Here are the key highlights of the new policy:

  • The 2004 norm of ‘5/20 rule’ has been scrapped. As per the 5/20 rule, a carrier which has completed five years of domestic operations and had a fleet of 20 aircraft was eligible to fly abroad. But now an airline can commence international operations after operating at least 20 aircraft or 20 percent of their total flying capacity, whichever is higher, on domestic routes. This means, new airlines like Air Asia and Vistara, which began operations in 2014 and 2015 respectively, can fly international.
  •  An open skies policy would be implemented on a reciprocal basis for SAARC countries and countries beyond 5,000 km from Delhi. It means that airlines from such countries will have no restriction on flights to India, and Indian carriers can have as many flights as they want to such countries.
  • To make flying more affordable in tier II and III cities, the policy proposes a regional connectivity scheme. Under this scheme, passengers would be charged Rs 2,500 for an hour’s flight and Rs 1,200 for a 30-minute flight on regional routes. The government would provide financial support to fund airlines’ losses on such un-served routes. It will refund 80 percent of the losses incurred by airlines due to cap on fare on such routes.
  •  To fund the subsidy element, government would be imposing a two percent cess on domestic and international air travel, which is likely to make airfares costlier on longer routes.
  • Around 350 dilapidated or underused airstrips across India have been identified which would be developed into "no frills airports". Revival of such airports would take place at an indicative cost of Rs 50-100 crore.
  • No air traffic control (ATC) approval would be required for helicopters flying below 5,000 feet.
  • Maintenance repair and overhaul (MRO) would now not have to pay royalty to airports where they operate.

Comments

 

Other News

Amit Shah on India’s languages: What else he said

Home minister Amit Shah’s remark on the need for a single national language has rightly sparked a debate, but the headlines missed much in his speech about language, culture, and identity. Giving away Rajbhasha Gaurav Puraskar and Rajbhasha Kirti Puraskar awards on the occasion of Hin

On A Personal note with musician Apache Indian

Renowned British singer, songwriter and reggae DJ, Apache Indian (originally known as Steven Kapoor) shot to fame with his style of music which came to be known as bhangramuffin (also called bhangragga) – a mix of bhangra, reggaemuffin and traditional dance hall in the early 1990s. His style changed

Traffic fines: Find the sweet spot between penalty and self-goal

When close to five lakh people are killed in road accidents every year in India, road transport minister Nitin Gadkari should have been complimented on his not-so-populist move to impose higher fines for traffic violations. Instead, many people are unhappy and several states – mostly ruled by the BJP

A unique project gives new life to a chaotic Mumbai fishing village

Traditional fishermen or Kolis; synonymous with feasting, song and dance; are the original inhabitants of Mumbai. For generations, they have loved their vocation and prided in it. But their work and lifestyle are facing threats from reclamation, land acquisition by builders, lack of sustainable fishing pra

Modi pledges higher target for degraded land restoration

Addressing the Conference of Parties (COP14) to the United Nations Convention to Combat Desertification (UNCCD), Prime Minister Narendra Modi on Monday announced that India would raise its target of the total area that would be restored from its land degradation status from 21 million hectares to 26 millio



Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter