New Delhi : The Union Cabinet has passed the new civil aviation policy on Wednesday. The draft of the new civil aviation policy was made public for the first time in November last year and the final draft was submitted to the Cabinet on June 3. New airlines, such as Vistara and AirAsia, can now fly to international routes after operating at least 20 aircraft in the domestic market.
Read here about new policy.
1. It proposes increasing connectivity to the country’s smaller towns and cities by offering sops and incentives to airlines to fly on these routes.
2. The policy proposes to cap fare at Rs. 2,500 for one-hour flights between smaller towns and cities as the government plans an ecosystem that will lead to an increase in air travel by making it affordable.
3. The government hopes to see the sale of 30 crore air tickets per year in the domestic sector by 2022 and 50 crore by 2027. For international travel, the target is 20 crore by 2027.
4. The new policy says the centre will refund 80 per cent of the losses incurred by airlines due to the cap in fare on such routes.
5. The aviation industry has been awaiting a provision in the policy that allows new airlines to operate overseas flights if they have a fleet of 20 aircraft. Currently an airline must not only have a 20-plane fleet but must also operate in the domestic sector for five years before it can fly abroad. Details will be shared in a government briefing that is expected shortly.
6. The draft policy proposes a 2 per cent cess in domestic and international tickets for the regional connectivity fund to be set up.
7. A revival of old air strips as no frill airports, a single window system for all aviation related transactions and complaints by aviation regulator Directorate General of Civil Aviation or DGCA are other important provisions in the new policy. The policy also proposes real time safety tracking.
8. This will benefit new operators like AirAsia and Air Vistara. AirAsia group chief Tony Fernandes tweeted, “Initial reports on India is superb. Of course I think 20 aircraft is to many but thank you @narendramodi. Big day for indian Avaition (sic).”
9. The policy has gone through several rounds of inter-ministerial discussions over the last 18 months. The draft policy was revised in October 2015.