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World|business|June 23, 2016 / 03:50 PM
Indian government hopes number of air tickets sold annually to soar to 300 mln by 2022

AKIPRESS.COM - runway-plane-airport The aviation policy of India is not only path breaking in the sense that it has democratized air travel, making it affordable by capping the one-hour flight fare at US$37 for middle and lower middle income families, but for the first time since independence there is actually an aviation policy, says Deccan Chronicle.

Kudos to the Narendra Modi government which hopes that the number of air tickets sold annually will soar to 300 million by 2022 from the present eighty million. The need for an aviation policy was first mooted 25 years ago, but it was only in 1997, under the then secretary, civil aviation, that a draft policy was prepared.

But, after some discussion, it drifted. Now there is a genuine effort to develop domestic connectivity with Tier-II and Tier-III towns, which is part of the Modi government’s vision of inclusive growth. It also involves a partnership with the state governments, which are expected to fill the viability gap, and there is enough indication to show that states benefit from the partnership – the ones that reduced taxes on aviation fuel, for instance, have witnessed higher growth in passenger travel. The government has done well in addressing the bilateral rights issue.

This new policy will also bring more investment into the aviation sector as new entrants will have to invest to scale up their fleet to 20 aircraft. Air Asia’s CEO has already said they would do so. Aviation experts feel it will take at least a year for something like domestic connectivity to take off. There will have to be investment in air traffic control towers and positioning of skilled manpower to man them. The policy is also quiet on costs like landing fees, handling fees, navigation fees, parking fees, etc. All these factors make viability an issue.

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