1. From hiking FDI limit to affordable airfare: 10 highlights from govt’s draft civil aviation policy

From hiking FDI limit to affordable airfare: 10 highlights from govt’s draft civil aviation policy

The government unveiled much-awaited draft civil aviation policy that proposed tax incentives for airlines, maintenance and repair works of aircrafts besides mooting 2 per cent levy on all air tickets to fund regional connectivity scheme.

By: | New Delhi | Updated: October 30, 2015 3:21 PM
Draft civil aviation policy

Draft civil aviation policy: Secy RN Choubey said Route Dispersal Guidelines, formulated to improve regional connectivity, have served the country well, targets over-achieved. (PIB photo)

The Ministry for Civil Aviation on Friday unveiled the draft civil aviation policy and proposed a slew of tax incentives for airlines, maintenance works.

The ministry proposed on Friday the 5/20 rule be replaced with a system of domestic flying credits. 5/20 rule requires a domestic airline to have a fleet of 20 aircraft and operational experience of five years to start international operations

Here are the 10 key takeaways from the government’s draft civil aviation policy

1. The Ministry for Civil Aviation proposes on Friday the 5/20 rule be replaced with a system of domestic flying credits but also left open an option to either retain or abolish the regulation altogether.

2. Government proposes hiking FDI in domestic airlines to over 50 per cent in open skies policy.

3. The draft civil aviation policy recommends that there be a cap of Rs 2,500 per hour on fares for travel between smaller cities. The shortfall in collections, the ministry cess would be made up by levying a 2 per cent cess.

4. All 150 stakeholder services of DGCA to go digital

5. Draft civil aviation policy pushes ‘Make In India’ in aeronautics

6. Separate regulation for helicopters from April 1 2016

7. AAI will maintain an Airport Service Quality rating of 4.5 or more across all airports

8. The new civil aviation policy shall provide regulatory certainty, as regards airport development

9. Route Dispersal Guidelines, formulated to improve regional connectivity, have served the country well, targets over-achieved, said Secy RN Choubey

10. Under PM Narendra Modi’s ‘Ease Of Doing Business’ initiative, we are completely liberalising code share regime, said Choubey.

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