Indian Cabinet clears civil aviation policy

The cabinet cleared the National Civil Aviation Policy on June 15, 2016. Under the policy, the 5/20 international flying rule has been replaced by a norm under which all airlines can commence international operations provided they deploy 20 aircraft or 20 per cent of the total capacity, whichever is higher, on domestic routes. On bilateral traffic rules, India will have an open-skies policy for South Asian Association for Regional Cooperation countries and those beyond a 5,000 km radius of Delhi, on a reciprocal basis. The draft regional connectivity scheme (RCS) has also been released, under which an airfare ceiling of Rs 2,500 has been fixed for flights of up to one-hour duration. The RCS will come into effect in the second quarter of 2016-17. Route dispersal guidelines have been amended to add six more sectors to metro routes. As per the guidelines, airlines are mandated to fly 10 per cent of the total capacity they deploy on metro routes on north-eastern and other select routes.

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