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Domestic Passenger And Cargo Air Transport |
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The government will encourage
provision of safe passenger and cargo air
transport services to every region of the
country at economic prices.
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It is necessary that both
airline operations as well as airport infrastructure
be treated as mutually dependent and complementary
and given similar concessions to promote a
balanced growth of the sector. Therefore,
airline operations and acquisition of aircraft
should be given the status of "infrastructure".
- Private sector participation in providing
domestic passengers and cargo air transport
services will be encouraged.
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Permission to start scheduled
passenger and cargo air transport service
would be given by government on demonstration
of competency, minimum capital requirement
and viability of the company to provide a
safe and reliable service. CAA may also fix
a minimum number of aircraft for scheduled
operators permit.
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Capacity induction will be
regulated with a view to ensuring safety,
security and preventing unhealthy levels of
capacity.
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Government and CAA will
ensure that there is no discrimination between
different passenger and cargo air-operators.
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Foreign equity up to 25%
and Non-Resident Indian investment up to 100%
will be permitted for domestic passenger transport
services. However, participation from foreign
airlines either directly or indirectly will
not be permitted. Substantive ownership and
effective control by Indians will be a pre-requisite.
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Wet leasing of foreign registered
aircraft by operators will be permitted only
in special circumstances like grounding of
aircraft, augmentation of capacity for short
term, to meet the capacity requirements for
handling natural calamities, etc.
- ATF will be taken out from administered price
mechanism for petroleum prices. The price of
ATF for domestic airline will, therefore, be
governed by market and customs duty. Airlines
will also be permitted import of ATF.
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There will be freedom to
operate non-revenue and passenger charter
and cargo flights to any foreign destinations.
Indian passport holders will also be allowed
to travel on these flights.
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Helicopter operations will
be given a new boost by a total change in
outlook. At present, fixed wing norms with
minor changes are broadly applied to rotary
wing aircraft. Fresh guidelines will be formulated
in consultation with user industry from the
point of view of rotary wing aircraft. Fresh
Air Traffic Services and controlling procedures,
which exploit the inherent advantages of helicopter
without compromising safety, will be evolved.
This will also reduce the cost of operations
of helicopters and efficient use of airspace.
Encouragement will be given to use of helicopters
in the areas of heli-tourism, adventure sports,
mountaineering/ trekking, point-to-point heli-services
to bypass traffic congestion on the road,
connecting remote areas and islands in Northeast,
Andaman and Nicobar and Lakshdweep, religious
places, sky crane for construction/ laying
of transmission lines etc.
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Flying clubs, Aerosports
like hang-gliding, ballooning, heli-skiing,
para-jumping etc. will be promoted by encouraging
private investment and formulating liberalized
guidelines in consultation with users. This
will include rationalized Avgas prices and
liberalized air space control.
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Special consideration will
also be given to Private operators and Corporate
operators by way of rationalized Avgas prices,
encouragement for construction of smaller
airstrips/helipad et. in private sector.
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PROMOTION OF GENERAL AVIATION AND SMALL AIRCRAFT
OPERATION
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There is need to open up
the country and tap the latent demand for
air services in many parts of the country
currently not on the air map. However, the
traffic profile in these areas does not permit
viable operations of jet. Even smaller aircraft
operations are not viable because of the high
cost of operation and high break-even factor.
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While Route-Dispersal Guidelines
do help in providing air services in the remote
and inaccessible areas, further measures are
required to encourage widespread air-connectivity.
Passenger and cargo air transport services
to many regions will not be possible unless
operation of small aircraft is made economically
viable either on stand alone basis or in conjunction
with major trunk routes.
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Therefore, Aviation Turbine
Fuel (ATF) for turbo prop aircraft operations
will be provided at par with price for international
air services, with a cap of 4% on sales tax.
Operation of smaller aircraft/ charters will
be further encouraged through rationalization
of airport charges, Inland Air Travel Tax
(IATT) and Avgas prices. For the NorthEast
region, IATT has been fully exempted on all
routes. Government will consider extending
similar facilities to other category II areas.
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There is a need to change
the traditional concept of airport development,
ownership and operations in view of the economics
of small aircraft/charters operations. Participation
of state Government, urban local bodies, airline/
aircraft operators, other private investors
will be encouraged in development, upgradation
and management of small airports/ airstrips.
These airports will be distinct from traditional
airport and will be bare-bone type with no
frills. Such airports need not be mandatorily
manned and onus of ensuring security and safety
of operations will rest on the aircraft operator
in conjunction with the local administration/
bodies, etc. This will encourage the operation
of small aircraft/ air taxis, as operators
themselves or in collaboration with State
Government / Urban local bodies/ residents
of a specific locality, factory, nearby factories,
tourist operators will be able to manage such
airports/airstrip flexibly and efficiency
at reduced cost. This will boost passenger
transport and tourism
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Single engine aircraft of
seating capacity upto 10 seats can be permitted
for passenger charter and cargo flights. Such
operations shall be in accordance with the
single engine operation guidelines and over
land areas having no hilly terrain or other
obstructions.
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