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Fare cap for 1-hour routes in new aviation policy

Government may also replace the contentious 5/20 rule, says report

Policy Pulse
Publish Date: Jun 3 2016 9:30AM | Updated Date: Jun 3 2016 9:30AM

Fare cap for 1-hour routes in new aviation policy

 An airfare not more than Rs 2,500 for each passenger for an hour flights to promote local connectivity will be a “game-changer” in new national civil aviation policy, which will be submitted to the Union Cabinet, ‘The Indian Express’ has quoted Civil Aviation Secretary Rajiv Nayan Choubey as saying. 

 
Policy should be out in two weeks. Draft has been finalised and it will be sent to the Cabinet on Friday, Choubey told the paper. 
 
Report quoted sources as saying that the government may also replace the contentious 5/20 rule — a minimum five-year domestic experience and 20 aircraft for local carriers to fly abroad.
 
According to them it may be replaced with a 0/20 norm — zero-year experience and minimum 20 aircraft or 20 per cent capacity deployed domestically, whichever is higher. 
 
If cleared by Cabinet, policy will allow new carriers like AirAsia India and Vistara — both operated by the Tata Group via joint ventures with foreign carriers — to operate internationally. 
 
However, Choubey said he could not comment on the norm, as policy was yet to be made public. 
 
Report further quoted sources as saying that consensus emerged during inter-ministerial discussions on thorny issues in the much-awaited policy, such as conditions associated to permission for domestic airlines to fly overseas, the open sky policy and the regional connectivity scheme for non-trunk routes.
 
India has signed ASAs or bilateral traffic rights with 109 nations covering aspects relating to the number of flights, seats, landing points and code-share.