Friday, June 03, 2016

New aviation policy has fare cap for 1-hour routes: Rs 2,500

An all-inclusive airfare not exceeding Rs 2,500 per passenger for one-hour flights to promote regional connectivity will be a “game-changer” in the new national civil aviation policy to be submitted to the Union Cabinet on Friday, Civil Aviation Secretary Rajiv Nayan Choubey told The Indian Express. “The policy should be out in two weeks. We have finalised the draft and it will be sent to the Cabinet tomorrow. There were 22 items in the policy. We have now broadly evolved a consensus on these issues,” Choubey said. Sources said the government may also replace the controversial 5/20 rule — a minimum five-year domestic experience and 20 aircraft for local carriers to fly abroad. They added that it is likely to be replaced with a 0/20 norm — zero-year experience and minimum 20 aircraft or 20 per cent capacity deployed domestically, whichever is higher.
If approved by the Cabinet, the policy will enable new carriers like AirAsia India and Vistara — both operated by the Tata Group via joint ventures with foreign carriers — to operate internationally.
03/06/16 Sunny Verma/Indian Express
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