Photo for representational purpose
The Union Cabinet on Tuesday cleared the Civil Aviation Policy in order to boost the domestic aviation sector and provide passenger-friendly fares.
The Civil Aviation Ministry had sent the to the Cabinet for approval on June 3 after the NDA government proposed a new draft in October 2015.
This new policy aims at providing various benefits to domestic airline passengers.
Here are some of the highlights:
# Capping of fare: Rs 1,200 for 30 minutes and Rs 2,500 for hour-long flights.
# A single window for all aviation related transactions, complaints, etc.
# 5/20 rule that allows a carrier to fly abroad only if it has 20 aircraft and has flown domestic for five years.
# Two per cent levy on all air tickets to fund regional connectivity scheme and providing viability gap funding for airlines to encourage operations on regional routes.
# Restoration of air strips at a maximum cost of Rs 50 crore through Airports Authority of India (AAI).
# Permission for Indian carriers to get into code-sharing agreement with foreign carriers for any destination within India.
# More focus on ease-of-doing business as government plans to liberalise regime of regional flights.