RAJYA SABHA TV – POLICY WATCH AVIATION POLICIES: TAKING OFF

In News :

  • The Ministry of Civil Aviation has unveiled the Vision 2040 document, which highlights the growth potential in different sub-sectors of Indian aviation and the key action steps are required to be taken to achieve the desired objective.

Highlights of Vision 2040 :

  • As per the document the total passenger traffic (to, from and within India) in India is expected to rise nearly six-fold from 187 million in FY 2018 to around 1124 million in FY 2040. (821 million domestic and 303 international passengers)
  • The overall CAGR (compound annual growth rate) works out to around 9% in domestic and 7% in international traffic during FY 2018-2040.

Why such long-term plan?

  • Rather than having five-year plans, the document talks about India having a robust 20-year plan that lays out the targets and the path to get there along with time lines and clear accountability.
  • Since aviation is a longterm plan, aircraft procurement, airport development, air navigation system changes and skill development should be done in a cohesive manner.
  • It said technology developments like artificial intelligence, machine learning, blockchain, composites, super-alloys, biofuels etc. are changing the face of aviation.

A high growth Path :

  • Total passenger traffic to, from and within India, during Apr-Nov 2018 grew by around 15% year on year as compared to around 6% globally.
  • India is now the seventh largest aviation market with 187 million passengers (to, from and within India) inFY2017-18.

Various Initiatives :

  • As per the document initiatives like Nabh Nirman (for airport capacity augmentation), Digi Yatra (for paperless travel) and AirSewa (for online passenger grievance redressal) are bringing in radical changes.

Policy Suggestions :

  • It said that the government may consider establishing a Nabh Nirman Fund (NNF) with a starting corpus of around $2 billion to support low traffic airports in their initial phases.
  • The tax structure for Aviation Turbine Fuel (ATF), Maintenance, Repair and Overhaul (MRO) and aircraft leasing may be gradually aligned with leading global jurisdictions.
  • The concept of land pooling may be used to keep land acquisition costs low and to provide landowners with high value developed plots in the vicinity of the airport.
  • It also said DGCA may be converted into a fully-independent Civil Aviation Authority, with its own sources of funding and freedom to recruit professionals at market-linked salaries.
  • Most transactions with DGCA will be automated with minimal human interface.
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