Civil aviation: Encourage PPP, devp 20 airports in Tier II, III cities, says Yes Bank, ASSOCHAM report

YES Bank and ASSOCHAM have released ‘Civil Aviation – Developing Remote & Regional Connectivity’ report.

YES Bank, India?s fourth largest private sector bank, in association with ASSOCHAM, India?s apex industry body, on Wednesday released the ‘Civil Aviation – Developing Remote & Regional Connectivity’ report. here are some key recommendations:

Immediate / short term objectives:

*Encourage the growing private sector participation essentially through Public Private Partnership (PPP) models.

*Lay more emphasis on ‘Aerotropolis’ model to enhance revenues, especially from non-aeronautic avenues like retail, advertising and vehicle parking.

*Overcome regulatory challenges with respect to approvals for setting up MRO business and reduce the procedural delays with respect to import of spares parts and components.

*Fast-track the process of awarding airport management contracts to bring in efficiency and improve the facilities at existing airports.

*Reduce the lack of transparency in the procedural aspects of the industry which results in lack of cost competitiveness over other modes of cargo transportation.

Medium / long term objectives:

*Develop around 20 airports in Tier II and Tier III cities and spend USD 1.3 billion on non-metro airport projects over next 5 years.

*To mobilize the stagnated growth through resolving issues like pricing policies, taxation structure of Aviation Turbine Fuel (ATF), high airport charges, limited connectivity in Tier II and III cities and infrastructure bottlenecks.

*Improve the availability of hangar space at key international airports enabling Indian MROs to tap into the larger potential market of Aircraft’s operating within 5?6 hours of flying distance from India.

*Strengthen the network of third party MRO service providers by modifying the huge tax implications.

*Restructure RDG such that routes with high and medium Passenger Load Factor (PLF) subsidize each other and routes with low PLF be supported by establishing a Regional Air Connectivity Fund (RACF).

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First published on: 08-10-2014 at 18:25 IST