Due to hefty pricing, it is true that most of the Indians have never travelled on an aeroplane. But things are moving in right direction, to enable the common man to fly at least once every year, the Ministry for Civil Aviation (MoCA) today unveiled the draft civil aviation policy proposing a two per cent levy on air fares on trunk routes to subsidise air travel to under-served and un-served destinations.
The ministry additionally proposed a replacement to the 5/20 rule (which requires an Indian airline to have a fleet of 20 aircrafts and operational experience of five years to commence international operations) with a reworked domestic flying credits (DFC) formula, but it also left open options to either retain or abolish the regulation altogether.
A final decision on the issue will be taken after public consultations and will subsequently be notified when the final civil aviation policy is cleared by the Cabinet.
The primary aim of the policy is to ensure a tariff of no more than Rs 2,500 per ticket for each flying hour with a host of incentives and other benefits to both airport developers and operators to make that happen.
The push for air travel proposed under the regional connectivity scheme is expected to boost domestic air traffic to 300 million by 2022 from 70 million now. Domestic air ticketing is expected to go up further to 500 million by 2027.
The policy dwells on the upgrade of airports, better regional connectivity, easing of norms for flying abroad, further liberalisation in open skies regime, development of cargo business, chopper services, attracting investments in maintenance sector, ground handling and security.
The ministry has considered a slew of fiscal incentives for stakeholders in the draft policy across the country’s fledgling aviation industry to reduce operating costs for airlines and rationalise air fares.
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