Cabinet clears new civil aviation policy

1458215390 indian civil aviation industry
1458215390 indian civil aviation industry

Airfares capped at Rs 2,500 for 1-hour flights

New Delhi: The much awaited policy on Civil Aviation unveiled today on Wednesday with an array of pro-passenger measures including restricting airfares for one hour duration flight at Rs 2,500.

“Air can't get public money for eternity”

The policy forces boost in domestic aviation sector by tapping its growth with provisions such as capping airfares at Rs 2,500 for a one-hour flight, unilateral traffic rights auctions, airlines tax incentives for maintenance and repairs of aircraft besides broaching 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.

The Civil Aviation Ministry had sent the proposed policy to for approval on June 3.

Union Government had for the first time unveiled the policy draft in November 2014, subsequently replacing it with another draft in October 2015.

Initially, the policy was expected to be finalized in the last financial year as certain proposals were to be implemented from April 1, 2016.