Friday, March 25, 2016

Much-delayed Civil Aviation Policy looks to generate employment

Mumbai: The Civil Aviation policy, first expected to be finalised by November-end, was later moved on to December 2015-end. Now, the government says that the policy may finally see the light of day in April this year.
Disagreements over the 5/20 rule -- which requires air carriers to fly domestic routes for at least five years and have a fleet of 20 aircraft before they fly international routes -- is one of the major reasons for the delay in the policy. A 2% levy on cess on domestic and international flight tickets to pay for improving regional connectivity, is another tender nerve.
While the government irons out the issues, a quick look at the draft aviation policy that tells us that one of the focuses of the government through the new policy is the generation of employment.
According to a JM Financial report, India's air travel market is the sixth largest globally in terms of (the) total domestic seats and ninth largest in the world by total domestic and international seats.
"However, despite being the second most populous country, seventh largest in terms of area and among the top 10 in terms of GDP, India remains the most under-penetrated aviation market in the world. India’s annual domestic seats per capita stand at an abysmal 0.08 -- significantly lower than other developing countries like Brazil and China, where penetration rates are between 0.4x and 0.7x," the report says.
25/03/16 Tejal Yerunkar/Daily News & Analysis
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