The government, in the revised draft civil aviation policy today, proposed 2 percent levy on all domestic and international tickets for the regional connectivity scheme alongwith setting up of no-frills airports and providing viability gap funding for airlines. It also proposed capping fare at Rs 2,500 for one-hour flight under the regional connectivity scheme. SpiceJet Chairman Ajay Singh while lauding the government’s efforts for regional connectivity says that it is the high point of the proposed draft. However, Singh told CNBC-TV18’s Shereen Bhan that capping fares at Rs 2,500 will be an impediment to growth of airlines. “Government should stay away from capping fares,” he says. Singh says the other positives of the proposed draft are the Maintenance, Repair and Overhaul (MRO) policy that will allow Indian airlines to service their planes within the country itself.
30/10/15 CNBC-TV18/moneycontrol.com
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30/10/15 CNBC-TV18/moneycontrol.com
