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

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

Contract for 31 oil fields awarded in Tamil Nadu

The Cabinet Committee on Economic Affairs (CCEA) has approved the award of 31 contract areas as part of the Discovered Small Field (DSF) Bid Round 2016. These fields were offered under new policy for small fields known as Discovered Small Field (DSF) policy, 2015, which offers improved fiscal terms with th

Leave me alone, pleads Gurmehar Kaur who is moving out of Delhi

Delhi University student Gurmehar Kaur, who spoke up against the ABVP on Twitter, has announced that she is withdrawing from `Save DU campaign` on Tuesday morning. The campaign was being held to protest against violence against students in the varsity campus. Her friend Ram Subramanian twee

If art or culture disappears, it wipes out an entire generation with it: Pankaj Tripathi

Known for his indelible roles in Gangs of Wasseypur and Nil Battey Sannata, Pankaj Tripathi  hails from a village in Bihar where many people still don’t have TV sets at home. His parents are farmers in Gopalganj district and the down-to-earth actor likes working in his farm whenever he visit

The unbearable weight of scorched earth

The National Aeronautics and Space Administration (NASA) and the National Oceanic and Atmospheric Administration (NOAA), in independent analyses, have declared 2016 the hottest year since 1880. Scientists have said that the planet witnessed three consecutive years of record heat.  The

Does India need IPS and IAS officers?

Does India need IPS and IAS officers?

PSUs under steel ministry must share resources: Minister

Steel minister Chaudhary Birender Singh has directed a high-level coordination committee comprising CMDs and top ministry officials to be constituted for pooling and sharing of resources among PSUs.   He said, “This will lead to aggregation of demand and economies of sc

Video

पूर्वांचल पर है सबकी नजर
Digital Transformation Summit

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter