Air Cargo Policy
- The Government is planning on bringing a new cargo policy for aviation.
- The aim of the policy is to provide thrust to the air cargo’s and to boost the Aviation economy.
- India air cargo industry has to grow at 30% to realize the vision of national civil aviation policy. To achieve the target of ten Billion tonnes by the year 2027.
- By doing so it will boost the make in India Initiative.
- It will generate massive amount of employment.
- The Policy will eliminate the bottleneck faced by the aviation industry.
About National Civil Aviation Policy
Regional Connectivity Scheme
- This scheme will come into effect in the second quarter of 2016-17
- Airfare of about Rs2500 per passenger for a one-hour flight
Route Dispersal Guidelines (RDG)
- Category I to be rationalized based on a transparent criterion, i.e., flying distance of more than 700km, average seat factor of 70% and above and annual traffic of 5 lakh passengers.
- The percentage of Cat.I traffic to be deployed on Cat.II, and IIA will remain the same while for CATIII it will be 35%. Routes to Uttarakhand and Himachal Pradesh included in Category II.
- Revised categorization to apply from winter schedule of 2017.
- Their view of routes will be done by MoCA once every5 years.
- 5/20 Requirement
- Replaced with a scheme which provides a level playing field
- All airlines can now commence international operations provided that they deploy 20 aircraft or 20% of total capacity (in term of average number of seats on all departures put together), whichever is higher for domestic operations
Bilateral Traffic Rights
- GoI will enter into ‘Open Sky’ ASA on a reciprocal basis with SAARC countries and countries located beyond 5000 km from Delhi. For countries within 5000 km radius, where the Indian carriers have not utilised 80% of their capacity entitlements but foreign carriers /countries have utilised their bilateral rights, a method will be recommended by a Committee headed by Cabinet Secretary for the allotment of additional capacity entitlements
- Whenever designated carriers of India have utilised 80% their capacity entitlements, the same will be renegotiated in the usual manner.
Ground Handling Policy
- The Ground Handling Policy/ Instructions/Regulations will be replaced by a new framework:
- The airport operator will ensure that there will be three Ground Handling Agencies (GHA) including Air India’s subsidiary/JV at all major airports as defined in AERA Act
- At non-major airports, the airport operator to decide on the number of ground handling agencies, based on the traffic output, airside and terminal building capacity
- All domestic scheduled airline operators including helicopter operators will be free to carry out self-handling at all airports through their regular employees
- Hiring of employees through manpower supplier or contract
- Workers will not be permitted for security reasons
- Encourage development of airports by AAI, State Governments, the private sector or in PPP mode
- Future tariffs at all airports will be calculated on a ‘hybrid till’ basis, unless specified otherwise in concession agreements. 30% of non-aeronautical revenue will be used to cross- subsidise aeronautical charges
- Increase non-aeronautical revenue by better utilisation of commercial opportunities of city side land
- AAI to be compensated in case a new greenfield airport is approved in future within a 150 km radius of an existing unsaturated operational AAI airport (not applicable to civil enclaves)
Aviation Security, Immigration and customs
- sMoCA will develop ‘service delivery modules’ for aviation security, Immigration, Customs, quarantine officers etc in consultations with respective Ministries/Departments
- Allow Indian carriers to provide security services to other domestic airlines subject to approval of BCAS
- Encourage use of private security agencies at airports for non- core security functions to be decided in consultation with MHA
- Such agencies should be registered under the Private Security Agencies (Regulation) Act, 2005 and will also be separately accredited by BCAS
- Subject to minimum benchmarks being met, security architecture at the different airports will be proportionate to the threat classification and traffic volume.
Helicopters and Charters, I
- Separate regulations for helicopters will be notified by DGCA after due stakeholder consultation
- MoCA to coordinate with Govt agencies and other helicopter operators to facilitate Helicopter Emergency Medical Services
- Helicopters will be free to fly from point to point without prior ATC clearance in airspace below 5000 feet and areas other than controlled or prohibited or restricted airspace
- Airport charges for helicopter operations will be suitably rationalized
- The existing policy of allowing Inclusive tour package charters will be further reviewed to include more categories of passenger charter flights recognised globally.
- Maintenance, Repair and Overhaul
- The MRO business of Indian carriers is around Rs 5000 crore, 90% of which is currently spent outside India. In the budget for 2016-17, customs duty has been rationalised and the procedure for clearance of goods simplified. Further incentives proposed in the policy to give a push to this sector:
- MoCA will persuade State Governments to make VAT zero- rated on MRO activities
- Provision for adequate land for MRO service providers will be made in all future airport/heliport projects where potential for such MRO services exists
- Airport royalty and additional charges will not be levied on MRO service providers for a period of five years from the date of approval of the policy
Aviation Education and Skill Building:
- Estimated direct additional employment requirement of the Civil Aviation Sector by 2025 is about 3.3 lakh.
- All training in non-licensed category will conform to National Skill Qualification Framework standards. MoCA will provide full support to the Aviation Sector Skill Council and other similar organisations/agencies for imparting skills for the growing aviation industry.
- There are nearly 8000 pilots holding CPL but who have not found any regular employment. MoCA will develop a scheme with budgetary support for Type- rating of Pilots. The detailed scheme will be worked out separately.
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