Indian Government to Promote Regional Airline Policy

Thursday, 19th September 2013 at 15:38pm

In an effort to give travelers from far flung areas a chance to travel by air, the government is devising a new policy that would oblige local carriers to fly to Tier II and Tier III cities regardless of their commercial viability or profitability.

The government is also studying to construct new airports and refurbish old airports in at least 50 remote towns and cities across the country.

In a recent event organized by the Associated Chambers of Commerce and Industry of India, KN Shrivastava, the Civil Aviation Secretary, disclosed that the government will introduce the new regional airline policy soon.

India has a large aviation market with close to 121 million domestic travelers and 41 million international tourists. The country currently ranks as the ninth largest aviation market and if the current growth rate is sustained or faster, it will catapult itself to the 3rd position by 2020.

The regional airline policy aims to serve those areas that are either not currently served by any airlines or not served by reliable means of transportation. According to Sec. Shrivastava, this policy will oblige local airline operators to fly to these areas without looking at the economic side of their operation.

The policy, though not yet approved, will be discussed during the ministerial conference next month to be attended by state ministers and other local state officials.

The state-owned enterprises, Hindustan Aeronautics Limited and National Aerospace Laboratories are tasked to fabricate small and light aircraft to provide regional transport with 19 to 100-seat capacity aircraft.

According to the latest report by AT Kearney, the country has a total fleet of only 55 aircraft for its regional transport in 2011. By 2025, it is projected to grow to 261 aircraft.

By: Pete Lee.