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New aviation policy to connect India with 'Bharat'

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  13 April 2015 12:00 AM GMT

Bengaluru, April 12: A new civil aviation policy, which is on the anvil, will facilitate more airlines to connect metros and state capitals with more cities and towns across the country, Civil Aviation Minister Ashok Gajapathi Raju said on Sunday. “We want more airlines to operate across the country, connecting more cities and towns, as air connectivity is crucial for rapid economic growth. Our new aviation policy will accelerate the sector’s growth and connect as many cities and towns in Bharat,” Raju told reporters at a function here.

Admitting that running an airline was a tricky business and the aviation sector has gone through turbulent times, the minister said the new policy would encourage more investment in the sector, attract new players and eble the existing airlines expand their operations in the domestic and intertiol routes.

“Our new policy will ensure sustaible growth benefiting all stakeholders, especially passengers and cargo operators. We have about 30 airports without aviation activity, which is non-productive. We need a long-term strategy to turn them around into assets,” Raju said at the launch of Air Pegasus, a new low-cost regiol airline, at the city airport.

The new policy, whose draft has been circulated among all the stakeholders, aims at enhancing air connectivity, developing six metro airports as intertiol hubs, developing more airports through public-private partnership mode, rationolising jet fuel cost, promoting air cargo, maintence, repair and operations (MRO), helicopter operations and improving passenger facilitation.

“Taxation is a major issue in the sector. We have asked the fince ministry to exempt service tax on MROs for 5-10 years so that airlines can maintain, repair or service their aircraft within the country than sending them to Sri Lanka, Singapore and Dubai and save costs,” Raju said.

In this context, he mentioned the inordite delay in the setting up an MRO facility at gpur by tiol carrier Air India with the global aerospace major Boeing since 2006 due to tax and regulatory issues.

Similarly, Raju said he has written to all chief ministers to slash VAT on aviation turbine fuel, as 40-45 percent of the operatiol cost is incurred on this. “Some (CMs) have responded, but not many of them. The tax on jet fuel ranges from four to 30 percent across states. To tax them (airlines) to death is not good. The tax on jet fuel needs to be ratiolised,” he stressed.

The policy also will address the issue of route dispersal guidelines (5/20 rule) and inter-connectivity, as the prevailing rule does not allow an airline to fly overseas without five-year operatiol experience and a fleet of 20 aircraft. The ministry has identified six airports in Delhi, Mumbai, Cheni, Kolkata, Bengaluru and Hyderabad for developing them as major intertiol hubs for aircraft, passenger and cargo movement. (IANS)

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