Flights Sale: New Aviation Policy And Its Impact

The new civil aviation policy has been designed in such a way that it is not only beneficial to the airlines, but most importantly, to the passengers. These reforms will ensure a lot better viability gap funding, which will in turn, help to connect smaller airports by various airline operators. We all know that the leasing companies are not at all interested in small planes. The regional connectivity plan can only succeed if the government is involved in arranging aircraft.

There Are More Planes Coming On The Way For You

Several meetings have been organized by the civil aviation ministry to pave a way for ensuring availability of aircraft for the new carriers. These carriers are the ones that are supposed to start operations in order to implement the regional connectivity scheme of the government. It has been decided that funding will be shared by the center as well as the state, in the ratio of 80:20 or 90:10 (for North Eastern states). The government may also take a call in allowing foreign registered aircrafts to fly in India. The availability of aircrafts is seen as the biggest impediment in this scheme so far. The big lessors are not at all interested in smaller planes (under 30 seater). The government’s efforts to convince these lessors may yield no outcome, as they have a particular business model that every lessor is hesitant to change. Also, efforts should be made to make startups very well capitalized in order to attract finance.

What Are the Big 5 Changes Happened In the Reform?

We definitely need to know about the 5 major changes that have been undertaken in order to bridge the gap of the regional areas. The first reform would be the replacement of 5/20, by 0/20. Now, the question is what does this mean?

Well this means that every airline will now need a fleet of 20 planes. There is no need of additional requirement of 5 years old local operations to fly overseas. The second change would be the regional connectivity scheme, in which 22 areas will be covered, with a fare of Rs. 2500, or even below than this. Also, the various parts of airport security will be outsourced to private parties, this one being the third major change. The fourth reform is that there will be no need of ATC approval for helicopters that are flying below a height of 5,000 ft. The last change that has occurred is that there is no need of paying royalty to airports, when the MROs (Maintenance Repair and Overhaul) are not in operation.

Advantages Of These Changes

There are some incumbent airline, like Jet Airways which will face even more competition due to this reform, while there are some airlines, like Vistara and Air Asia that can now fly internationally very soon and are benefitted by such a reform. Also, it is only because of this reform that the passengers can now get more Indian airlines offer than ever, to fly abroad. This also covers several other incentives such as reduced service tax, lower Tax and excise duty on jet fuel. This new aviation policy will take flying to the masses, with the objective of connecting all regional airports, and making the flight easier. National Civil Aviation policy has envisaged this, by making the flight affordable and convenient. Also, to promote this objective, the scheme is provided by various ways of upgradation/development of no-frills airports.

 India has the potential to be among the top three nations in domestic and international traffic of passengers. It also has an ideal geographical location between the eastern and the western hemisphere, with a support of around 30 crore Indians and rapidly growing economy. In spite of all these advantageous facts, Indian Aviation sector has yet not been able to receive the position that it deserves. It has been ranked 10^th in terms of number of passengers. With the help of these newly formed Aviation policies, the desired ranking can be achieved. It will also help economic growth of India.