Thursday, July 21, 2016

Impact of FDI in Aviation Sector

Delhi: The Government has released the National Civil Aviation Policy (NCAP) 2016 on 15.06.2016. The NCAP 2016 covers the broad policy areas, such as Regional connectivity, Safety, Air Transport Operations, 5/20 Requirement for International Operations, Bilateral traffic rights, Fiscal Support, Maintenance, Repair and Overhaul, Air-cargo, Aeronautical 'Make in India'. The broad key features of the NCAP are as under:

i) VGF for operation under Regional Connectivity Scheme (RCS).

ii) Revival of un-served or under-served routes under RCS.

iii) Introduction of a new Category 'Schedule Commuter Operator' under Commercial Air Transport Operations.

iv) Rationalization of Category-I routes under Route Dispersal Guidelines (RDGs) on the basis of criteria given in NCAP 2016.

v) The requirement of 5 years and 20 aircrafts for international operation has been modified to 0 years and 20 aircrafts or 20% of the total capacity (in terms of average number of seats on all departure put together) whichever is higher for domestic operations.

vi) Liberalization of domestic code share points in India within the framework of ASA.

The National Civil Aviation Policy, 2016 has been formulated after extensive consultation with all the stakeholders. With a view to aid in modernization of the existing airports to establish a high standard and help ease the pressure on the existing airports, 100% FDI under automatic route has now been allowed in Brownfield Airport projects. This move would also serve in further developing the domestic aviation infrastructure.
21/07/16 Business Standard
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