Speaking to The New Indian Express, Tony Tyler, Director General, International Air Transport Association (IATA) talks about his views on the draft National Civil Aviation Policy (NCAP) and future prospects for India.
What are your views on the draft National Civil Aviation Policy (NCAP)?
I am very excited about the prospects of Indian aviation. IATA forecasts that India is going to be the third largest aviation market in the world within 10 years. So clearly it’s a good thing that the government has put together an aviation plan that will help make this happen. Certainly having an aviation plan like this is a step in the right direction but I do have to say that I am concerned about some aspects of it. Particularly where it’s going to ride cost to the industry or in some cases deviate from what are well accepted, tried and tested global principles. I have written to Ashok Gajapati Raju, Minister of Civil Aviation and Choubey, Civil Aviation Secretary about these issues in the last week.
What are the concerns about NCAP?
I have three main concerns. The first one concerns the proposed 2% regional connectivity fund levy. Then there is an issue about the proposed auctioning of traffic rights. And finally, I am very concerned about the proposal to use dual or multiple till when we are looking at how India’s charges should be regulated.
What are you concerned about the 2% regional connectivity fund?
The 2% connectivity fund levy is going to add a huge burden of cost to the industry in India. It’s already very expensive place to operate, by putting this regional connectivity fund levy on it’s going to add something like $350 million a year further to additional costs for airlines in India. And rest assured, in the end it’s the airlines who are going to pay because of the competitive market, fares are set in the market, the amount the passenger pays is set in the market. So it’s going to be a real drain and a financial strain on the airlines in India.
13/03/16 New Indian Express
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What are your views on the draft National Civil Aviation Policy (NCAP)?
I am very excited about the prospects of Indian aviation. IATA forecasts that India is going to be the third largest aviation market in the world within 10 years. So clearly it’s a good thing that the government has put together an aviation plan that will help make this happen. Certainly having an aviation plan like this is a step in the right direction but I do have to say that I am concerned about some aspects of it. Particularly where it’s going to ride cost to the industry or in some cases deviate from what are well accepted, tried and tested global principles. I have written to Ashok Gajapati Raju, Minister of Civil Aviation and Choubey, Civil Aviation Secretary about these issues in the last week.
What are the concerns about NCAP?
I have three main concerns. The first one concerns the proposed 2% regional connectivity fund levy. Then there is an issue about the proposed auctioning of traffic rights. And finally, I am very concerned about the proposal to use dual or multiple till when we are looking at how India’s charges should be regulated.
What are you concerned about the 2% regional connectivity fund?
The 2% connectivity fund levy is going to add a huge burden of cost to the industry in India. It’s already very expensive place to operate, by putting this regional connectivity fund levy on it’s going to add something like $350 million a year further to additional costs for airlines in India. And rest assured, in the end it’s the airlines who are going to pay because of the competitive market, fares are set in the market, the amount the passenger pays is set in the market. So it’s going to be a real drain and a financial strain on the airlines in India.
13/03/16 New Indian Express
