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Friday 29 January 2016

Aviation Policy may impose 35% royalty on airlines

New Delhi: The Cabinet is likely to take up in February the new Civil Aviation Policy which may a 35 per cent royalty to airports for self ground-handling operations by airliners.

Sources told Bloomberg TV India that the government has held its final meeting on new Civil Aviation policy with stakeholders on Monday and the policy will be put before Cabinet in February.

“The new policy is likely to have fresh guidelines on ground handling. Airport Authority of India and private airport operators have demand airlines to pay up to 35 per cent royalty on self ground handling operations,” said an official privy to the development.


The government has been trying to draw up a new aviation policy for almost two years to make Indian sky more vibrant. Aviation Minister A Gajapathy Raju, Minister of State Mahesh Sharma along with the bureaucrats met airline industry representatives, which included Indigo promoter Rahul Bhatia.

Sources said the airlines argued against the existing ground handling rules. AAI and the airlines have been at logger heads on the ground handling policy. AAI and private operators felt that airlines should pay a royalty if airlines chose self handling'.
To Read the News in Full 25/01/16 Veena Mani/Bloomberg TV
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