Aviation policy puts small towns on flyers' map

NEW DELHI/ MUMBAI: You may soon be able to fly to Bikaner or Bathinda, with the government aiming to put small towns on the aviation map and capping fares at Rs 2,500 an hour for locations that have so far been untouched by air connectivity.
While there is a ceiling on fares, those flying from metros or large cities will have to pay a “small levy“ to fund building of no-frills airports.The Centre and states will chip in with funds and other concessions.
The plan, which has been in the works for the past few months, is part of the new civil aviation policy that was approved by the Cabinet. Announcing the policy , civil aviation minister Ashok Gajapathi Raju ruled out capping domestic air fares on existing routes, leaving it to market forces.
In addition, a new policy for helicopters, including setting up of four heliports, and allowing choppers to fly under 5,000 feet in unrestricted airspace without ATC clearance has been proposed in the new policy .
India is the fastest grow ing aviation market, clocking 22% rise in domestic traffic; the government hopes to increase the number of flyers to 30 crore by 2022, from eight crore currently. The new aviation policy announced on Wednesday aims to step up the growth rate and boost tourism while making air travel affordable for the aam aadmi.
“Regional connectivity, where the capping of fares has been announced, will benefit flyers greatly. For instance, there are no flights between Bangalore and Mysore simply because there is no passenger load factor. It's a 30 minute flight. If the fare costs Rs 1,200 many would prefer to fly,“ said Sudhakara Reddy, president of consumer group Air Passengers Association of India.
Aviation secretary R N Choubey said distance from airports was one of the key factors deterring people from flying to smaller towns. “NDA govt clears India's first ever integrated National Civil Aviation Policy. This will be a gamechanger for the sector... Regional Connectivity Sche me (RCS) --to revive unserved airports and routes in Tier II III cities,“ Raju tweeted. His deputy, Mahesh Sharma said the government would look to build 5080 no-frills airports across the country, many of them using airstrips that had been abandoned after World War II.
Each such airport is expected to cost between Rs 50 and Rs 100 crore and would come up in states which offer lower VAT on aviation fuel, provide police and fire services free of cost and supply power and water atconcessional rates.
On its part, the Centre will offer lower service tax and bear 80% of the burden to make flying to these destinations financially viable.But the key will be lower state levies on fuel as it accounts for nearly half the fare, Choubey told reporters at press conference.
States levy as much as 25% high value added tax on aviation turbine fuel, pushing up fares.