June 15: The NDA government has unveiled its new Civil Aviation Policy, making the Indian skies more open for operators and cheaper for passengers.
The pro-passenger measures in the policy include the capping of airfare at Rs. 2500 for an hour-long flight and scrapping of the 20/5 norm for launching international service. This could also mean more seats on international routes.
The other main highlights of the policy include auctioning of unilateral traffic rights; Tax incentives for airlines, maintenance and repair works of aircraft; 2 per cent levy on all air tickets to fund regional connectivity scheme; and Providing viability gap funding for airlines to encourage operate on regional routes.
Announcing the policy, Civil Aviation Minister Ashok Raju said that the policy aims to bolster the domestic aviation sector by tapping its high growth potential. The new policy has cheered the stock market and all aviation scrips scaled new highs soon after the announcement.