[h=1]'Acche din' for air travellers! Cabinet clears new civil aviation policy, puts cap on airfares[/h]New Delhi: The Union Cabinet on Wednesday cleared the much-awaited Civil Aviation Policy thereby unveiling a slew of passenger-friendly measures including capping of airfares at Rs 2,500 for an hour-long flight.
Under the new policy there will also be a cap of Rs 1,200 for a 30-minute flight. Further Under the new policy there will also be a cap of Rs 1,200 for a 30-minute flight. Further the cabinet has abolished the 5/20 rule and replaced it with 0/20. This implies that airline companies will now be able to fly overseas with only twenty aircrafts without being in operation for a minimum of five years.
Civil Aviation Minister Ashok Gajapathi Raju tweeted:
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The policy aims to bolster the domestic aviation sector by tapping its high growth potential with provisions such as capping airfares at Rs 2,500 for a one-hour flight, 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.
Raju further tweeted:
The Civil Aviation Ministry had sent the proposed policy to Cabinet for approval on June 3.
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The NDA government had for the first time unveiled the policy draft in November 2014, subsequently replacing it with another draft in October 2015.
The aviation minister tweeted:
Initially, the policy was expected to be finalised in the last financial year as certain proposals were to be implemented from April 1, 2016.
With PTI Inputs
http://zeenews.india.com/business/n...tion-policy-puts-cap-on-airfares_1895933.html
Under the new policy there will also be a cap of Rs 1,200 for a 30-minute flight. Further Under the new policy there will also be a cap of Rs 1,200 for a 30-minute flight. Further the cabinet has abolished the 5/20 rule and replaced it with 0/20. This implies that airline companies will now be able to fly overseas with only twenty aircrafts without being in operation for a minimum of five years.
Civil Aviation Minister Ashok Gajapathi Raju tweeted:
MUST READ[h=6]Aviation must not hinder but complement economic growth: Raju[/h]
The policy aims to bolster the domestic aviation sector by tapping its high growth potential with provisions such as capping airfares at Rs 2,500 for a one-hour flight, 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.
Raju further tweeted:
The Civil Aviation Ministry had sent the proposed policy to Cabinet for approval on June 3.
MUST READ[h=6]Air India can't get public money for eternity: Civil Aviation Minister[/h]
The NDA government had for the first time unveiled the policy draft in November 2014, subsequently replacing it with another draft in October 2015.
The aviation minister tweeted:
Initially, the policy was expected to be finalised in the last financial year as certain proposals were to be implemented from April 1, 2016.
With PTI Inputs
http://zeenews.india.com/business/n...tion-policy-puts-cap-on-airfares_1895933.html
