New Delhi: This should have been obvious to the experts drafting the new civil aviation policy. Making Route Dispersal Guidelines (RDG) more complex while also expecting already burdened Indian airlines to participate in the Regional Connectivity Scheme is asking for too much. Remember, RCS is the backbone of the draft policy which wants the electoral promise of the BJP to be fulfilled - which is making flying accessible to every Indian. Not only is RCS still not a fully developed concept, keeping the RDG alive and making it tougher will only make airline reluctant to participate in the RCS.
Now, global aviation consultancy Centre for Asia Pacific Aviation (CAPA) has also pointed out how the dual penalty on airlines could hurt the industry. The draft policy is yet to be cleared by the Union cabinet and officials of the Ministry of Civil Aviation have been promising this should be done by month end.
"Expanded route dispersal guidelines will increase the burden on Indian carriers while RCS will be a second levy for regional connectivity. The existing Route Dispersal Guidelines already place an operating and financial burden on Indian carriers. We would urge the government to consider that if RDG is to be retained then we should at least remain at status quo rather than implement the proposed expansion of the scope of the RDG which will add complexity and costs. Over time, as the RCS becomes established it should replace the RDG. It should be noted that in the interim the industry will be levied twice for regional connectivity, once in the form of the cess and secondly the obligation to operate non-viable routes," CAPA said in its comments on the draft policy. The deadline for comments got over on Monday and sources indicate some comments from stakeholders and industry lobby groups may have been pertaining to the RDG and RCS issues in the policy.
01/12/15 Sindhu Bhattacharya/First Post
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Now, global aviation consultancy Centre for Asia Pacific Aviation (CAPA) has also pointed out how the dual penalty on airlines could hurt the industry. The draft policy is yet to be cleared by the Union cabinet and officials of the Ministry of Civil Aviation have been promising this should be done by month end.
"Expanded route dispersal guidelines will increase the burden on Indian carriers while RCS will be a second levy for regional connectivity. The existing Route Dispersal Guidelines already place an operating and financial burden on Indian carriers. We would urge the government to consider that if RDG is to be retained then we should at least remain at status quo rather than implement the proposed expansion of the scope of the RDG which will add complexity and costs. Over time, as the RCS becomes established it should replace the RDG. It should be noted that in the interim the industry will be levied twice for regional connectivity, once in the form of the cess and secondly the obligation to operate non-viable routes," CAPA said in its comments on the draft policy. The deadline for comments got over on Monday and sources indicate some comments from stakeholders and industry lobby groups may have been pertaining to the RDG and RCS issues in the policy.
01/12/15 Sindhu Bhattacharya/First Post
