New Delhi: The Union Cabinet passed the much-awaited Civil Aviation Policy in its meeting today, unveiling a slew of passenger-friendly measures including capping of airfares at Rs 2,500 for an hour-long flight and allowing operators to fly abroad.
The new policy has abolished the archaic 5/20 rule mandated for airlines to fly overseas. The rule allowed only carriers with 20 aircraft and five years of flying experience to provide international flights.
This means, a new domestic player in the aviation sector can go international in the first few months if it has a fleet of 20 aircraft. The new norms, if implemented, will stand to benefit the likes of Vistara and AirAsia. Other norms for domestic carriers to go international have also been simplified.
However, an airline will have to allocate 20 aircraft or 20 per cent of their total fleet of aircraft, whichever is higher, to the domestic sector if they wish to fly overseas. This effectively means a carrier must have a minimum 20 aircraft in its fleet.
The Civil Aviation ministry has also approved a Rs 2,500 cap for one-hour flights. Airlines will also have to ensure that refunds on cancelled tickets are made within 15 days, even if the bookings were made through agents or portals.
In case of flight cancellations announced within 24 hours of departure, the compensation amount has been enhanced to up to Rs 10,000.
Refunds will be applicable on all fares, including promotional and special rates.
The government was moving back and forth on the matter, primarily to strike a balance between various stakeholders on their glaring differences over such issues.
Commenting on the new policy announcement, Civil Aviation Minister Ashok Gajapathi Raju tweeted:
The Civil Aviation ministry had sent the proposed policy to Cabinet for approval on June 3.
The NDA government had for the first time unveiled the policy draft in November 2014, subsequently replacing it with another draft in October 2015.
Initially, the policy was expected to be finalised in the last financial year as certain proposals were to be implemented from April 1, 2016.
