Operators Looking Forward to Government Plans to Put Small Towns on Aviation Map

Government plans to put small towns like Salem, Kota, Jaisalmer on aviation map 

The government's move to connect airports in smaller towns appears to be gathering momentum with 30+ locations with existing airstrips expected to be on the aviation map soon. 

While no names have been finalized, places such as Salem, Kota, Jaisalmer, Purnea and Bhagalpur may see local players fly small aircraft under a new scheme being discussed by the aviation ministry. 

While the ministry would leave it to operators to decide on the sectors that they want to fly, it is considering easier rules and lowest possible burden on carriers, such as doing away with the need to furnish bank guarantees. 

At the same time, it is keen to ensure that the gains of connectivity are not confined to pockets of prosperity such as those in the South or West. "The idea is to ensure a balanced spread across the country; there could be some caps at least in the first year," civil aviation secretary R N Choubey has disclosed.

The government's strategy -which envisages capping airfares for those spending less than 60 minutes in air at Rs 2,500 and a 2% levy on other sectors along with concessions from the state and the Centre -is expected to take off over the next few weeks. 

Operators, too, are very keen to implement the Government's such plans of smaller cities connectivity. The air fares can be less than Rs 2500 for an hour's flight. It can be in sync with railways' 2A or 3A fares. The 2% levy might not be needed. It is possible if -

a. the Rules are liberal and their interpretation impartial,

b. the DGCA shows more productive man hours; no pending paper work or file movement  at DGCA doors on the pretext of 'manpower is short'.

c. service tax provisions are lenient

d. VAT on fuel is kept minimum

e. the Govt devices incentives instead of subsidies

Against this backdrop, the Government should come up with a transparent Aviation Policy in 2015. Apart from other things, the policy must indicate -

a. How the non aeronautical revenue will be shared,

b. How the infra structure at such smaller towns will come up,

c. How the peripheral surface transport activities around such airports are monitored, and

d. What steps are being implemented to increase the non aeronautical revenue.

In all such considerations, there is a huge potential to generate significant revenue. If addressed professionally, the traveler, the operator and the Government will always be in win-win-win situation.  

Choubey, who has been driving the new aviation policy, also said that the government would clearly articulate its stance on the 5/20 rule also when the final document is released. "We have given three options but we are open to accept another formulation if someone suggests it."