The draft national aviation policy, unveiled by the government and open to public comments, is intended to further open up the skies and make air travel more common and affordable. Since the aim of government policy for any sector is to expand it and make it more robust, it should not solely be judged by intentions. The test lies in whether the policy ingredients will actually benefit the sector when they are implemented. The main highlights of the draft policy are expansion of the room for new capacity to enter the sector, thrust on regional connectivity through incentives and infrastructure development, improvement of maintenance, repair and overhaul facilities, greater competition in some areas, raising of the FDI limit from 49 per cent to 50 per cent and simpler procedures for greater ease of business. The new capacity creation is to be achieved by an open skies policy outside a radius of 5,000 km and auctioning of flying rights within that radius. This can increase competition and earn more revenues to the government through licence fees, which can be invested in creating and improving infrastructure.
06/11/15 DHNS
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06/11/15 DHNS
