20 Oct

National Civil Aviation Policy, 2016

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Contents

• Introduction
• National Civil Aviation Policy, 2016
  • Aims & objectives
  • Salient Features

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Introduction

India is the third largest domestic market for civil aviation in the world and has been growing at a very healthy growth rate of over 14% per annum between FY14 and FY20.
Covid-19 lockdown led to some hiccups in FY21 and FY22, but as per Economic Survey of India, the aviation industry has crossed the passenger and cargo traffic pre COVID times in FY23.

Civil Aviation Sector In India has great potential

• Growing middle class population
• Growing tourism
• Improved socio-economic conditions -> Higher disposable income
• Favorable demographics -> More young people who are happy to fly
• Improved penetration of aviation infrastructure due to initiatives like UDAN.

National Civil Aviation Policy, 2016

It is the First time since independence that an integrated civil aviation policy has been brought out by the Ministry.

Aims/Objectives

1. Make regional air connectivity a reality.
2. Take flying to masses by making it affordable and convenient
3. Establish an integrated ecosystem which will lead to significant growth of the civil
aviation sector to promote tourism, employment and balanced regional growth.
4. Enhance ease of doing business through deregulation, simplified procedures and e governance.

Salient Features

• Regional Connectivity Scheme (UDAN Scheme)
• Route Dispersal Guidelines – to make more services available for Tier-2, Tier-3 cities.
• 5/20 Requirements replaced with new schemes for starting international flights -> Provides level playing field
  • All airlines can commence international operations provided that they deploy 20 aircraft or 20% of total capacity (in terms of average number of seats on all departure put together), whichever is higher in domestic operations.
• Bilateral Traffic Rights – Enter into ‘OPEN Sky’ agreements with SAARC and other neighboring countries ASAP.
•  Airport PPP/AAI
• Encourage development of airport by AAI, state government, the private sector or in PPP mode
• Future tariffs at all airports will be calculated on a ‘hybrid till’ basis, unless specified
  otherwise in concession agreements.
  • 30% of non-aeronautical revenue will be used to cross subsidize aeronautical
    charges.
• Increase non-aeronautical revenue by better utilization of commercial opportunities of
  city side land.
• AAI to be compensated in case a new green field airport is approved in future within a
  150 km radius of an existing unsaturated operational AAI airport (not applicable to civil
  enclaves)

Aviation Education and Skill building

• Estimated direct additional requirement of the Civil Aviation Sector by 2025 is about 3.3 Lakh.
•  All training in non-licensed category will conform to National Skill Qualification
  Framework standards.
• MoCA will provide full support to Aviation Sector Skill Council and other similar
  organizations/agencies for imparting skills for the growing aviation sector
• There are nearly 8000 pilots holding CPL but who have not found any regular
  employment. MoCA will develop a scheme with budgetary support for Type-rating of
  Pilots.