IANS/Bengaluru


A proposed new civil aviation policy will facilitate more airlines to connect metros and state capitals with more cities and towns across the country, Civil Aviation Minister Ashok Gajapathi Raju said yesterday.
“We want more airlines to operate across the country, connecting more cities and towns, as air connectivity is crucial for rapid economic growth. Our new aviation policy will accelerate the sector’s growth and connect as many cities and towns in Bharat,” Raju told reporters at a function here.
Admitting that running an airline was a tricky business and the aviation sector has gone through turbulent times, the minister said the new policy would encourage more investment in the sector, attract new players and enable the existing airlines expand their operations in the domestic and international routes.
“Our new policy will ensure sustainable growth benefiting all stakeholders, especially passengers and cargo operators. We have about 30 airports without aviation activity, which is non-productive. We need a long-term strategy to turn them around into assets,” Raju said at the launch of Air Pegasus, a new low-cost regional airline, at Bengaluru airport.
The new policy, whose draft has been circulated among all the stakeholders, aims at enhancing air connectivity, developing six metro airports as international hubs, developing more airports through public-private partnership mode, rationonalising jet fuel cost, promoting air cargo, maintenance, repair and operations (MRO), helicopter operations and improving passenger facilitation.
“Taxation is a major issue in the sector. We have asked the finance ministry to exempt service tax on MROs for 5-10 years so that airlines can maintain, repair or service their aircraft within the country than sending them to Sri Lanka, Singapore and Dubai and save costs,” Raju said.
He referred to the inordinate delay in setting up an MRO facility at Nagpur by national carrier Air India with the global aerospace major Boeing since 2006 due to tax and regulatory issues.
Similarly, Raju said he has written to all chief ministers to slash VAT on aviation turbine fuel, as 40-45% of the operational cost is incurred on this.
“Some (chief ministers) have responded, but not many. The tax on jet fuel ranges from 4 to 30% across states. To tax them (airlines) to death is not good. The tax on jet fuel needs to be rationalised,” he said.
The policy also will address the issue of route dispersal guidelines (5/20 rule) and inter-connectivity, as the prevailing rule does not allow an airline to fly overseas without five-year operational experience and a fleet of 20 aircraft.
The ministry has identified six airports in Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad for developing them as major international hubs for aircraft, passenger and cargo movement.
lBudget carrier SpiceJet has taken delivery of three B-737s from a Czech company on a short-term wet-lease to cater to the summer rush.
The new arrivals expand the SpiceJet Boeing fleet to 20 aircraft.
“The three wet-lease 737s here for high-season. Will be flown by Czech pilots,” chief operating officer Sanjiv Kapoor said in a tweet, of the first fleet expansion after new promoter Ajay Singh took control of SpiceJet in February.
While wet-leasing of an aircraft includes pilot and crew, dry-lease is only of the aircraft.
The induction of these planes is part of Spicejet’s plan to lease a total of seven aircraft this month to meet the anticipated summer travel rush.
The company has increased the number of flights to 270 in the current summer schedule from 210 operated during the winter.