Tag: National Civil Aviation Policy

Cabinet Approves National Civil Aviation Policy Minus Norm Of 20

[New Delhi]Cabinet Approves National Civil Aviation Policy Minus Norm Of 20
The much-awaited national civil aviation policy that seeks to strengthen regional connectivity and tap the sector’s high growth potential was today cleared by the Union Cabinet.
Civil Aviation Minister Ashok Gajapathi Raju said the policy is a “game changer” and that the country’s aviation sector is poised to become the world’s third largest by 2022.
The policy has been finalised after nearly eight months since the Ministry came out with the revised draft in October 2015 and follows many rounds of deliberations with stakeholders. The NDA government had for the first time unveiled the policy draft in November 2014.
Raju said in a tweet.
India would be the third largest civil aviation market by 2022. “To achieve this, we need right intentions, vision, planning and execution,” he added.
.Initially, the policy was expected to be finalised in the last financial year as certain proposals were to be in effect from April 1, 2016.
However, the government had been moving back and forth on the policy seeking to sort out the differences among stakeholders including on 5/20 norm.Govt postponed Condition of 20 for international flights for future
In the run-up to the framing of policy, various provisions including the issue of international flying norm witnessed extensive debate, with legacy carriers opposing any changes to the rule, while start-up airlines frantically demanding its scrapping.
Significantly, AirAsia Berhad –a key stakeholder in AirAsia India had recently said that it was confident of the Government scrapping the norm.
“…the ruling (5/20 norm) is expected to be revoked along with a new National Civil Aviation Policy (NCAP) to be introduced in the near future, given massive lobbying against it,” AirAsia Berhad said in its 2015 annual report released yesterday

Centre Moots 2% Levy On Domestic+International Air Tickets

[New Delhi] Centre Moots 2% Levy On Air Tickets Which May Hike Air Fares Even Low Cost ATF
Government proposing 2 % levy on all domestic and international tickets to raise funds for boosting regional air connectivity.
The proposal, part of the elaborate and revised National Civil Aviation Policy, is to be implemented from January 2016.
Even as there are concerns that additional levy will push airfares higher, leading carriers IndiGo + SpiceJet said the move will help develop infrastructure for regional air connectivity which, in turn, will bring down the costs.
Coming out with the much-awaited draft policy, the Civil Aviation Ministry today proposed a raft of measures to bolster regional air connectivity, including by way of levying additional cess and providing viability gap funding.
For Regional Connectivity Scheme (RCS), the government plans to impose a 2 per cent levy on all tickets.
“RCF (Regional Connectivity Fund) will be funded by a levy of 2 per cent on all domestic and international tickets from January 1, 2016 onwards