New Delhi: The new civil aviation policy has an integrated approach to take flying to the masses, but the move to cap fares for one-hour flights on unserved regional routes at Rs 2,500 is likely to be a negative for airline companies, says a report.
Crisil Research today also said the 5/20 rule that barred new airlines from flying abroad has been replaced with the 0/20 norm that "levels the field".
As per the 5/20 rule, only domestic airlines with at least five years of operational experience and a minimum of 20 planes were allowed to fly overseas.
Unveiled by the government on Wednesday, the policy provides measures to boost regional connectivity, including imposing a small levy on domestic tickets, initiatives to develop new airports, separate regulations for helicopters and steps to boost skill development in the aviation sector.
In a report, brokerage firm Motilal Oswal said the policy takes an integrated approach to take flying to masses and has set an ambitious target of 300 million domestic passengers by 2022 from 85 million in 2015-16.
Under the regional connectivity scheme, which will be in place in the next quarter, fares for a one-hour flight will be capped at Rs 2,500.
To Read the News in Full 16/06/16 PTI/Times of India
Crisil Research today also said the 5/20 rule that barred new airlines from flying abroad has been replaced with the 0/20 norm that "levels the field".
As per the 5/20 rule, only domestic airlines with at least five years of operational experience and a minimum of 20 planes were allowed to fly overseas.
Unveiled by the government on Wednesday, the policy provides measures to boost regional connectivity, including imposing a small levy on domestic tickets, initiatives to develop new airports, separate regulations for helicopters and steps to boost skill development in the aviation sector.
In a report, brokerage firm Motilal Oswal said the policy takes an integrated approach to take flying to masses and has set an ambitious target of 300 million domestic passengers by 2022 from 85 million in 2015-16.
Under the regional connectivity scheme, which will be in place in the next quarter, fares for a one-hour flight will be capped at Rs 2,500.
To Read the News in Full 16/06/16 PTI/Times of India
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