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

"We will be involving community volunteers to effectively police the park"

The work on Sunder Nursery, a lush green refuge from urban chaos in central Delhi, started in 2007, when the Aga Khan Trust for Culture (AKTC) undertook a conservation and renewal proje

Namami Gange: Of promises and achievements

Twenty-six-year-old Surender is a ferryman in Varanasi. Surender and his family own three boats and their livelihood is dependent on taking tourists on a joyride on the Ganga. Recalling the time when he used to ride a boat with his grandfather, Surender says, “At that time Ganga water was so

Trouble on the metro line

The storm is yet to die out over the Mumbai Metro Rail Corporation Limited`s (MMRC) taking over 30 hectares of the famed Aarey colony, a green belt of mumbai, when another application has come in from MMRC demanding another 12,000 sq metres of land. The colony in Goregaon, inaugurated in 195

"Govt must allow open spaces which can serve as lungs for the city"

For years we had a tradition in Mumbai, particularly for all the trunk roads, to be avenues (boulevards). Though we continue to have trees in some parts of Mumbai, the fact is that we appear to have given up on this. Having trees and plants on streets and roads not only provides shade but also absorbs poll

Dry ATMs: Rahul takes a dig at govt

As media reports spoke of ATMs across the country going dry, Congress leader Rahul Gandhi took a dig at the government even as the finance ministry reviewed the situation and blamed it on “unusual demand for cash”. “Desh ke ATM sab phir se khali, Benkon ki haalat kya kar da

A hundred years ago: Lessons in civility

Gandhi was, as usual, busy on several fronts in April 1918. The previous year had witnessed his frst major satyagraha after returning to India, in Champaran. The previous month had witnessed his frst major political campaign in the chosen hometown of Ahmedabad, intervening in the mill-workers strike. B

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter