With my co panelist, discussed the Indian Government's draft civil aviation policy, on All India Radio. The policy sets an ambitious agenda for government, industry and investors to make the sector vibrant so much so that the country , faced with poor roads and rail connectivity, makes up through the aerial route.
Come to think of it. If the objectives set out making use and reviving 476 small and regional airports and providing affordability to 300 million Indian middle class for short hauls of 250-300 km are met, Indian skies change for ever. The government has promised an air fare of Rs 2,500 for a flight which is less than hour.
Surely, that will involve some amount of subsidy, which is proposed to be filled up by two per cent cess on international and domestic long flights. Well, that is a kind of dampener, because it amounts to cross-subsidisation. This means, the guy flying on short hauls is being part funded by the one flying on long flights.
Remember, when cross subsidisation takes place in the Railways for helping the general and second class passenger through goods traffic, much hue and cry is made. Why then, cross subsidisation in the aviation?
The draft policy covers a whole lot of other issues like liberalisation of so-called bilateral rights, which had been marked by non-transparent and corrupt system in the past. Some of the bilateral entitlements on juicy routes were taken away from the state-owned Air India and given away to the private airlines. Hopefully, the policy would see an end to the corrupt practices.
The restrictive policy of five years' experience in domestic skies and a minimum fleet of 20 aircraft should hopefully end. Why should only a handful of airlines , in collusion with the government, milk the lucrative international routes.
Overall, it is a draft worth supporting. Pl listen in to my discussion on All India Radio FM Gold Channel recorded version.
http://www.newsonair.com/main-audio-new-player.asp?id=54237
Pic courtesy: Indira Gandhi International Airport
