Minister of State for civil aviation, Mahesh Sharma announced the government is finally going to announce a mechanism that will help ease airfares, and unveil a new civil aviation policy to address all major issues affecting the sector. Sharma said the policy will lay out a road map to make India a leading player in the sector which is currently growing at over 20 per cent.
The government's priority also is to improve infrastructure which is why it is investing around Rs 15,000 Crore in 2016-17 to upgrade airports and setting up new ones. Sharma said PM Modi was keen to have an upper cap on ticket price and the government would announce the measures while taking views of airlines. "We are in the process of adopting certain measures to cap ticket price. Buty we are trying to do it by consensus and not by regulation. Our Prime Minister also envisions that fares be kept in control," Sharma said.
Airlines had faced severe criticism with the ticket rates touching Rs.50,000 for a one-way ticket between Bengaluru and Delhi during the Chennai floods in December last year. Similarily, the fares had gone up significantly during the Jat agitation. Aviation regulator Directorate General of Civil Aviation (DGCA) last week said discussions need to be held with airlines before any decision on fixing upper cap on ticket prices. "If capping of airfares is required, then we will have to have discussions with them (airlines)," DGCA chief M. Sathiyavathy said.
Sharma said the policy will address all the pending issues including the 5/20 norm, regional connectivity scheme and the ground handling issues. Under the 5/20 norm, a domestic airline cannot fly overseas unless it has completed five years of operation on local routes and has a fleet of 20 aircraft.
