News

Union Cabinet clears Civil Aviation policy to increase air travel

by IBNS 14 Jun 2016, 08:41 pm

New Delhi, June 15 (IBNS) The Union Cabinet has cleared the long-awaited civil aviation policy that envisages an increase in air travel by erasing rules for airlines to fly overseas and expanding regional air connectivity, reports said.

The Cabinet  proposes a cap of Rs. 2,500 on one-hour flights.

The clearance came after several rounds of inter-ministerial discussions over the last 18 months. The draft policy was revised in October 2015.

With the policy, the government hopes to see sale of 30 crore air tickets per year in the domestic sector by 2022 and 50 crore by 2027. For international travel, the target is 20 crore by 2027.

 Currently, only carriers that have been in the business for at least five years and own a minimum of 20 aircraft can fly abroad.

The policy also proposes increase in regional connectivity  by offering sops to airlines. 

 The government has proposed a Rs. 2,500 cap for an hour's flight on such routes to ensure affordability. It says the centre will refund 80 per cent of the losses incurred by airlines due to such caps.

Revival of old air strips as no frill airports, single window system for all aviation related transactions and complaints by aviation regulator - Directorate General of Civil Aviation OR DGCA  - and real time safety tracking are the other important decisions that the policy will take up.