Tuesday, March 06, 2012

Rs 12 per ticket is cost of an independent airline regulator

The civil aviation industry is about to get a new super-cop. And the cop will nick all passengers for Rs 12 for every airplane ride so that his independence as a regulator and enforcer is not compromised.
To be called the Civil Aviation Authority (CAA), the proposed civil aviation regulator will have twice the budget of the current Director-General of Civil Aviation (DGCA) which has to depend on the government for funds.
The CCA will be financially independent and will charge Rs 12 per departing passenger to generate funds. Also, 1 percent of air navigation service (ANS) charges will also go into the CCA’s kitty, whose annual budget will be double that of the present DGCA at about Rs 160 crore.
Of course, the CCA is many ways the new avatar of the DGCA as most of its staff will get transferred to the new regulator. The transformation of the DGCA into a more powerful CCA is expected to take place this year itself and the proposal will go to the Union Cabinet for approval by the month-end. Thereafter, a CAA bill is expected to be tabled in parliament later this year.
07/03/12 Sindhu Bhattacharya/Firstpost
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