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Construction : Feature | March 2016 | Source : Infrastructure Today

Draft National Civil Aviation Policy (DNCAP) 2015 - Industry view

RK Srivastava, Chairman, Airports Authority of India
It provides a fillip for promotion of regional air connectivity. AAI will examine the feasibility of developing AAI´s balance non-operational airports factoring the changed environment and the need for regional and remote area connectivity. For the non feasible, non-operational airports, other potential uses are being explored.

SGK Kishore, Chief Executive Officer, GMR Hyderabad International Airport Ltd. The policy seems to be progressive and meets India´s requirement while taking care of the global aviation trends and future capability building. We hope the policy will be implemented in its true spirit at the earliest.

Sonal Mishra, Associate Director, Capital Projects and Infrastructure, PwC India The policy has attempted to address the following issues, which are in line with the industry´s demand: development of Greenfield or Brownfield airports through PPP and by AAI; development of Tier- II and Tier- III airstrips/airports and development/upgradation of no-frills airport at cost of `50 crore each; proposed ´Open Skies´ policy on a reciprocal basis with SAARC countries and countries with territory located entirely beyond a 5000 km radius will allow European carriers to expand their network and frequencies in India; the policy changes and duty relaxation proposals is likely to make MRO for Indian planes cheaper by 25-30 per cent; proposed Regional Connectivity Scheme, an all-inclusive airfare not exceeding `2,500 per passenger, indexed to inflation for a one-hour flight on RCS routes - to be effective from April 1, 2016 would provide boost to domestic traffic.

Satyan Nayar, Secretary General, Association of Private Airport Operators Steps towards regional connectivity are welcome. However, a moratorium of 10 years on airport charges will not be a self-sustaining proposition. The economic benefit of providing VGF to public at large may not materialize unless there is clarity on the parameters to be examined before providing VGF for a particular route.

APAO strongly recommends abolition of the 5 year/20 aircraft rule pertaining to the commencement of International Operations by Indian Airline companies, which is discriminatory against Indian carriers Provisions regarding bilateral traffic rights are a welcome step towards opening Indian skies. Categorization of route can be based on traffic volume. However, it is to be revisited whether with the introduction of regional connectivity scheme (RCS), the route dispersal guidelines (RDG) are really required.

Introduction of hybrid Till shall lead to incentives to generate higher non-aeronautical revenue which would help in bringing down aeronautical charges in the long run and help airports to become viable and provide funds required for future expansion, and modernization. The hybrid Till mechanism, as followed across the world (using only the profit from non-aeronautical revenue streams for cross subsidization) should be adopted for all airports.

Liberalization of land use at existing AAI airports and future PPP/ AAI projects will realize the full potential of available land. However, specifically excluding existing PPP projects for the purpose of land use utilization is not in the interest of AAI/ such PPP projects.

AAI´s dual role as airport operator as well as Air Navigation Services (ANS)provider at times creates conflicts of interest and hence, ANS should be established as a separate entity, which will also bring the necessary focus for upgrades of ANS facilities in India.

There must be an apex body to implement various policy decisions where multiple government agencies are involved.

 
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