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Government clears new aviation policy

"The cabinet has cleared it. Yes, some changes have been made (in the draft policy circulated for opinion from stakeholders). The minister will brief you later today," a senior aviation ministry official said

The BJP led NDA government has  cleared a new civil aviation policy with some changes in the rules that allow carriers to fly abroad, besides measures to promote regional connectivity and boost cargo operations, sources said.

“The cabinet has cleared it. Yes, some changes have been made (in the draft policy circulated for opinion from stakeholders). The minister will brief you later today,” a senior aviation ministry official said, declining further comment.

The policy seeks to create an eco-system to handle 300 million domestic passengers by 2022 and 500 million by 2027, and 200 million international travellers by 2027. India had seen 139.32 million domestic and over 50 million international air travellers in 2014-15.

The new civil aviation policy proposes a capping of Rs. 2,500 on one hour-flights.

According to the sources, the civil aviation stakeholders are now eyeing on whether the new policy will bring any changes on 5/20 rule which decides whether an airlines can undertake abroad services. As of now, flights having five years experience in the services with 20 aircrafts can only  fly abroad.

The policy has also proposed wide range of new plans to make the regional connectivity in the nation much stronger. The government has also agreed to refund 80 percentage of the losses incurred by airlines due to the cap in the price of the domestic services.

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