Aviation policy seeks exemptions for regional carriers

New Delhi: As more details emerge about the proposed civil aviation policy, it would now appear that the civil aviation ministry has asked for concessions under which a five-year exemption from airport and navigation charges would be provided for "regional airlines" in their area of operations.

The regional airlines are being defined as carriers with aircraft that have a seating capacity of 80 and less, and operate exclusively on regional routes from any one metropolitan airport. Such metros include New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad.

Conceptually, regional airlines are intended to improve regional connectivity and also to create regional hubs.

The exemption is part of the proposed aviation policy which the ministry submitted to the Union cabinet, and which has now been referred to a group of ministers (GoM).

Exemption from navigation and landing charges could constitute around 10 per cent of overall costs for any airline.

Under the provisions of the new policy, the ministry has also asked for the establishment of an Essential Air Services Fund (EASF) that would provide subsidy to airlines that operate on "uneconomical but essential routes," such as those that connect the northeast of the country.