The Union Cabinet approved a new civil aviation policy aimed at making air travel affordable for million of India air passengers on Wednesday. This policy will encourage the customers to travel often and also expand the country’s aviation market. Currently Indian aviation sector ranks eighth on the global scale and the new policy aims to take it to the third spot, Minister of State for Aviation Mahesh Sharma.
The civil aviation policy has unveiled a regional connectivity scheme (RCS) that aims to connect smaller towns and cities to the main hubs and has capped the fare at Rs 2,500 per passenger for one-hour flights on the RCS routes that include unserved airports.
“The scheme will connect India’s remote unconnected regions, boost tourism, create jobs and stimulate the economy in tier 2-3 cities. Sub-sectors like MRO, cargo, helicopters, general aviation and Make in India, etc, will get a fillip with liberalised operational norms and tax breaks,” said Amber Dubey, partner and head, aerospace and defense, at KPMG India.
