National Civil
Aviation Policy (NCAP) 2016
The Union
Ministry of Civil Aviation (MoCA) released National Civil Aviation Policy
(NCAP) 2016 on 15 June 2016. The policy’s mission is to provide
safe, secure, affordable
and sustainable air travel for passengers and
air transportation of cargo with
access to various parts of India and the world.
Vision of the Policy
• To create an
eco-system to make flying affordable for the masses
• To enable 30
crore domestic ticketing by 2022 and 50 crore by 2027
• To increase
international ticketing to 20 crore by 2027
• Increase
cargo volumes to 10 million tonnes by 2027
The Union
Cabinet has cleared the Civil Aviation Policy in order to boost the domestic
aviation sector and provide passenger-friendly fares. This new policy aims at
providing various benefits to domestic airline passengers. In a boost for
domestic carriers, the government also amended what is called the 5/20 rule,
which allowed only airlines that had operated for five years and had 20
aircraft in their fleets to fly internationally.
Inside the Policy:
· India to become 3rd largest civil aviation market by 2022 from 9th.
· Domestic ticketing to grow from 8 crore in 2015 to 30 crore by 2022.
· Airports having scheduled commercial flights to increase from 77 in
2016 to 127 by 2019.
· Cargo volumes to increase by 4 times to 10 million tonnes by 2027.
· Enhancing ease of doing business through deregulation, simplified
procedures and e-governance.
· Promoting ‘Make In India’ in Civil Aviation Sector.
· Ensuring availability of quality certified 3.3 lakh skilled personnel
by 2025.
· Capping of fare: Rs 1,200 for 30 minutes and Rs 2,500 for hour-long
flights.
· A single window for all aviation related transactions, complaints, etc.
· 5/20 rule scrapped. Under the new rules, airlines must still have 20
planes before they can fly internationally, but no longer need to have operated
for five years.
· Start-up airlines can now fly abroad after operating at least 20 planes
or 20 per cent of their total flying capacity, whichever is higher, on domestic
routes.
· 2% levy on all air tickets to fund regional connectivity scheme and
providing viability gap funding for airlines to encourage operations on
regional routes.
· Restoration of air strips at a maximum cost of Rs 50 crore through
Airports Authority of India (AAI).
· India will have an open-sky policy for countries beyond the 5,000-km
radius from Delhi on a reciprocal basis. This means that airlines from European
or Saarc countries will have unlimited access, in terms of number of flights
and seats, to Indian airports, leading to increased flight frequencies with
these countries.
· Permission for Indian carriers to get into code-sharing agreement with
foreign carriers for any destination within India.
· More focus on ease-of-doing business as government plans to liberalise
regime of regional flights.
· The government will look to develop about 350 dilapidated or underused
airstrips across India into “no frills airports“.
· Four heli-hubs to be developed. Helicopter Emergency Medical Services
to be facilitated
Development of greenfield and brownfield
airports by State government, private sector or in PPP mode to be encouragedInternational Airports in India
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