The Aviation Minister Ashok Gajapati Raju recently said that the new Civil Aviation policy will be out by year-end, which has sent discussions in the industry into full throttle.
The draft civil aviation policy unveiled earlier this month proposed that tax incentives for airlines, a 2% tax cess on air fare to help aid regional connectivity, doing away with the 5/20 rule, and more.
However, ratings agency, India Ratings has said that the draft civil aviation policy failed to address structural issues to ensure long-term viability of major players like full service carriers and low cost carriers.
The agency warned airliners like IndiGo, SpiceJet, Jet Airways, GoAir to take a cautious stance while expanding in regional areas. They said, airlines should only enter regional areas after a thorough background research on the performance of regional airlines.
23/11/15 DNA
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The draft civil aviation policy unveiled earlier this month proposed that tax incentives for airlines, a 2% tax cess on air fare to help aid regional connectivity, doing away with the 5/20 rule, and more.
However, ratings agency, India Ratings has said that the draft civil aviation policy failed to address structural issues to ensure long-term viability of major players like full service carriers and low cost carriers.
The agency warned airliners like IndiGo, SpiceJet, Jet Airways, GoAir to take a cautious stance while expanding in regional areas. They said, airlines should only enter regional areas after a thorough background research on the performance of regional airlines.
23/11/15 DNA
