Cabinet Clears New Civil Aviation Policy 2016

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A new civil aviation law is coming. There were a lot of inter-ministerial conversations and lot of rectifications have done. The long-awaited civil aviation policy that seeks to reduce guidelines for airlines to fly overseas and drastically raise regional air connectivity has been approved by the cabinet of Indian ministry. It suggests a cap of Rs. 2,500 on one-hour air travels.

New Civil Aviation Law- What are the Points

The policy has undergone several rounds of inter-ministerial conversations over the last 18 months. The draft plan was modified in October 2015. With the plan, the government intends to produce an ecosystem that will certainly cause a rise in flight. It wants to see a sale of 30 crore air tickets per year in the local sector by 2022 as well as 50 crores by 2027. For global fly, the target is 20 crore by 2027.

The market for flights has been waiting for the plan to recognize if the ‘5/20 regulation’ that chooses whether new airline companies can fly abroad will certainly be entirely or partially taken out. Presently, just service providers that have been in the business for at least five years and also own a minimum of 20 planes can fly abroad.


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New Cap Scheme for Airline companies

The plan also recommends a local connection program by offering sops to airlines. Incentives could be supplied to airline companies to fly on regional courses. The federal government has proposed a Rs. 2,500 cap for an hr’s trip on such courses to make a certain price. However, the first time plan states the center will certainly reimburse 80 percent of the losses incurred by airline companies as a result of such caps.

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The draft also had recommended a 2 per cent cess in residential and also global tickets for the local connection fund to be set up. Reconstruction of old air strips as no fuss airport terminals, dedicated window system for all air travel relevant transactions and problems by airline regulator – Directorate General of Civil Aviation OR DGCA – and also live security monitoring are the various other crucial decisions that the plan will certainly use up.

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