In a big first step to making flying affordable for the masses, the Centre announced a slew of measures in its draft aviation policy that aims to incentivise flights to smaller towns and allows creation of no-frill airports to boost regional numbers.
Here are 15 key takeaways from the draft aviation policy that was released on Friday for inputs from stakeholders before finalisation.
1. Flying for masses
Under the Regional Connectivity Scheme (RCS) that will come into effect from 1 April 2016, the Centre will target an all-inclusive airfare not exceeding Rs 2,500 per passenger, indexed to inflation for a one-hour flight on RCS routes. This will be implemented by way of:
i) Concessions by different stakeholders
ii) Viability gap funding for scheduled commuter airlines
iii) Put nearly 300-odd airports to use. These will be upgraded no-frills airport at cost of Rs 50 crore each. Besides, to make operations in such airports feasible, the security will be aircraft-based, so that the airport is sanitised just around an hour or two before the flight.
iv) Centre has mooted 2 per cent levy on all air tickets to fund regional connectivity scheme.
2. Bilateral traffic rights
The government plans to liberalize the regime of bilateral rights leading to greater ease of doing business and wider choice to passengers. It will enter into an 'Open sky' ASA on a reciprocal basis with SAARC countries and countries with territory located beyond 5000 km.
3. Plan to increase FDI
The Centre has proposed to increase FDI in airlines from 49% to above 50% if it decides to go in for open skies for countries lying within 5,000 km radius
4. 5/20 Rule
Under this rule for Indian carriers to fly abroad, the Centre has invited suggestions on three possible policy options: i) 5/20 Rule may continue as it is, or
ii) 5/20 Rule will be abolished with immediate effect, or
iii) Domestic airlines will need to accumulate 300 domestic flying credits before commencing flights to SAARC countries and countries with territory located entirely beyond a 5,000 km radius from New Delhi.
The rest:
5. Secure skies
6. Code Share Agreements (CSA)
7. Maintenance, Repair and Overhaul (MRO)
8. Route Dispersal Guidelines
9. Ease for helicopters
10. Scheduled commuter airlines
11. More airports
12. Prod for AAI
13. Push for cargo
14. Aeronautical 'Make in India'
15. Charter operations
30/10/15 Economic Times
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Here are 15 key takeaways from the draft aviation policy that was released on Friday for inputs from stakeholders before finalisation.
1. Flying for masses
Under the Regional Connectivity Scheme (RCS) that will come into effect from 1 April 2016, the Centre will target an all-inclusive airfare not exceeding Rs 2,500 per passenger, indexed to inflation for a one-hour flight on RCS routes. This will be implemented by way of:
i) Concessions by different stakeholders
ii) Viability gap funding for scheduled commuter airlines
iii) Put nearly 300-odd airports to use. These will be upgraded no-frills airport at cost of Rs 50 crore each. Besides, to make operations in such airports feasible, the security will be aircraft-based, so that the airport is sanitised just around an hour or two before the flight.
iv) Centre has mooted 2 per cent levy on all air tickets to fund regional connectivity scheme.
2. Bilateral traffic rights
The government plans to liberalize the regime of bilateral rights leading to greater ease of doing business and wider choice to passengers. It will enter into an 'Open sky' ASA on a reciprocal basis with SAARC countries and countries with territory located beyond 5000 km.
3. Plan to increase FDI
The Centre has proposed to increase FDI in airlines from 49% to above 50% if it decides to go in for open skies for countries lying within 5,000 km radius
4. 5/20 Rule
Under this rule for Indian carriers to fly abroad, the Centre has invited suggestions on three possible policy options: i) 5/20 Rule may continue as it is, or
ii) 5/20 Rule will be abolished with immediate effect, or
iii) Domestic airlines will need to accumulate 300 domestic flying credits before commencing flights to SAARC countries and countries with territory located entirely beyond a 5,000 km radius from New Delhi.
The rest:
5. Secure skies
6. Code Share Agreements (CSA)
7. Maintenance, Repair and Overhaul (MRO)
8. Route Dispersal Guidelines
9. Ease for helicopters
10. Scheduled commuter airlines
11. More airports
12. Prod for AAI
13. Push for cargo
14. Aeronautical 'Make in India'
15. Charter operations
30/10/15 Economic Times
