India is set to have a new Aiviation Policy from April 1.
The new policy will focus on the development of regional connectivity and the waiving of taxes on domestic MROs (maintenance, repair and overhaul).
The Ministry of Civil Aviation secretary R.N. Choubey announced this news on February 2 at a civil aviation seminar in the capital.
“Discussions with the Ministry of Finance on waiving of taxes related to MRO have been encouraging,” said the minister of civil aviation, Pusapati Ashok Gajapathi Raju.
Currently, performing MRO is more expensive in India than abroad. Only $70 million out of the $700 million of the MRO business is carried out in the country.
In addition, the ministry plans to improve regional connectivity by developing 350 unused airstrips within the remote areas.
“India has a middle-class of 350 million of which only 70 million have travelled by air. We plan to develop no-frills airports so that airlines can offer tickets priced at $40 for one-hour flights. [However], the central and state governments will have to take a haircut and incentivise airlines to fly to smaller and remote airports.”
Claimed as the single most important feature of this policy, Choosey says that waiving of landing and parking charges and taxes on tickets will make flying more economical.