Friday, October 30, 2015

Government plans to introduce Rs 2500 airfare for 1-hr flight.

Government plans to introduce Rs 2500 airfare for 1-hr flight.
 
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With an aim to boost the aviation sector and offer more options to people, the government on Friday released the draft of the new Civil Aviation Policy. Incentives to fly to small towns at affordable costs and easing the norms for domestic carriers to operate services abroad are some of the highlights of the new draft. The policy will be finalised after inputs from stakeholders. One of the most people-friendly highlight of the policy is to ensure a tariff of no more than Rs 2,500 per ticket for each flying-hour with a host of incentives. It also mentions various other benefits to both airport developers and operators. According to the draft, Delhi will have two domestic terminals and one international terminal. All international services will have to operate from Terminal 3 of Delhi's Indira Gandhi International Airport. "A lot of consultation has taken place. We invite suggestions from stakeholders and public, since it involves the people of India. After all those suggestions come in, we will look into it," Civil Aviation Minister Pusapati Ashok Gajapathi Raju said. "The policy will also have a fixed period of existence, so that industry can plan in advance. That is the idea," Raju said while unveiling the new draft. "The basic behind of National Civil Aviation Policy is to take flying to the masses," Civil Aviation Secretary Rajiv Nayan Choubey said, adding that operators will get some doles to fly to smaller towns with incentives linked to fuel prices and inflation. The draft also mentions that the government is contemplating to hike foreign direct investment (FDI) in domestic airlines to over 50 per cent under the open skies policy. 

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