Business
New aviation policy to connect India with 'Bharat': Raju
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 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 enable the existing airlines expand their operations in
the domestic and international routes.
"Our new policy will
ensure sustainable 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 regional 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
international hubs, developing more airports through public-private
partnership mode, rationonalising jet fuel cost, promoting air cargo,
maintenance, repair and operations (MRO), helicopter operations and
improving passenger facilitation.
"Taxation is a major issue in
the sector. We have asked the finance 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 inordinate delay in the setting up an MRO facility at
Nagpur by national 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 operational 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
rationalised," 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 operational experience and a fleet of 20 aircraft.
The
ministry has identified six airports in Delhi, Mumbai, Chennai,
Kolkata, Bengaluru and Hyderabad for developing them as major
international hubs for aircraft, passenger and cargo movement.