In a chat with ET Now, Mythili Bhusnurmath, Consulting Editor OF ET NOW shares his thoughts on the aviation policy. Excerpts:
ET Now: Your overall assessment of the aviation policy has been laid out. It is largely a three-fold focus - improve regional connectivity, bring more operational efficiency in the system and bring in lower costs.
Mythili Bhusnurmath: Yes, that's the overall picture of the policy and in many ways it has gone beyond people's expectations. The MRO in particular has been a welcome thrust since this is an area where India has immense advantages and we could capitalise on that.
The only part of the policy that I am a little unhappy with is the idea of subsidising. Competition should be the way to lower prices. If you want to make it possible for the ordinary middle class person to fly, it should ensure that with greater competition prices coming down.
If we did more to improve road and rail connectivity and then thought of air connectivity and allowed airline prices to come down through competition rather than through subsidies, it would have been better. Of course, every subsidy is paid out of the tax payer's money and that money could be better utilised to improve road connectivity.
30/10/15 ET Now/Economic Times
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ET Now: Your overall assessment of the aviation policy has been laid out. It is largely a three-fold focus - improve regional connectivity, bring more operational efficiency in the system and bring in lower costs.
Mythili Bhusnurmath: Yes, that's the overall picture of the policy and in many ways it has gone beyond people's expectations. The MRO in particular has been a welcome thrust since this is an area where India has immense advantages and we could capitalise on that.
The only part of the policy that I am a little unhappy with is the idea of subsidising. Competition should be the way to lower prices. If you want to make it possible for the ordinary middle class person to fly, it should ensure that with greater competition prices coming down.
If we did more to improve road and rail connectivity and then thought of air connectivity and allowed airline prices to come down through competition rather than through subsidies, it would have been better. Of course, every subsidy is paid out of the tax payer's money and that money could be better utilised to improve road connectivity.
30/10/15 ET Now/Economic Times
