New civil aviation policy approved, passenger-friendly measures introduced

New Delhi: The Union Cabinet introduced various passenger friendly measures on Wednesday as it approved the new civil aviation Policy, media reported.

According to report, the cabinet has put a cap on airfares at Rs 2,500 for an hour-long flight and Rs 1,200 for 30-minute flights.

The new policy has been introduced with an aim to bolster the domestic aviation sector by tapping its high growth potential.

Measures like capping airfares, auctioning of unilateral traffic rights, tax incentives for airlines, maintenance and repair works of aircraft besides mooting 2 percent levy on all air tickets to fund regional connectivity scheme and providing viability gap funding for airlines to encourage operate on regional routes have been introduced in the new aviation policy.

The proposal was sent for approval to Cabinet on June 3.

Civil Aviation Minister Ashok Gajapathi Raju said the policy is a "game changer" and that the country's aviation sector is poised to become the world's third largest by 2022.

The policy has been finalised after nearly eight months since the Ministry came out with the revised draft in October 2015 and follows many rounds of deliberations with stakeholders.

The NDA government had for the first time unveiled the policy draft in November 2014. Initially, the policy was expected to be finalised in the last financial year as certain proposals were to be in effect from April 1, 2016.

However, the government had been moving back and forth on the policy seeking to sort out the differences among stakeholders including on 5/20 norm.

In the run-up to the framing of policy, various provisions including the issue of international flying norm witnessed extensive debate, with legacy carriers opposing any changes to the rule, while start-up airlines frantically demanding its scrapping.

OneIndia News

(With inputs from PTI)