New civil aviation policy approved by Indian government

On Wednesday, June 15, India’s government approved a new civil aviation policy which is aimed at increasing regional connectivity and cargo operations, while making it easier, and hopefully cheaper for passengers to travel by air.
According to the Civil Aviation Minister, Ashok Gajapathi Raju, the policy will aid India in becoming become the third-biggest civil aviation market worldwide by 2022, headed by the U.S. and China, tweeting that it would be “a game-changer for the (aviation) sector.”
The new policy will limit the cost of airfares to INR2,500 (US$37) for an hour-long flight flight between small towns and cities, while also offering incentives to airlines to fly such routes. 80 percent of the losses incurred by airlines due to the fare caps would be refunded by the government.
Raju is also quoted as saying that the intentions behind this new policy are to “make flying affordable, safe and convenient and to promote balanced regional growth, tourism, infrastructure and ease of doing business.”
Another policy change included the lifting of the restriction whereby a domestic airline would not need to seek governmental approval before entering into any international code-share agreement with other carriers. Additionally, airlines will no longer have to have been in operation and have a minimum fleet of 20 aircraft before being allowed to fly international routes.
India is currently the fastest growing air travel market owing to the booming economy and expanding middle class. Passenger numbers grew 20% in 2015, and almost on a weekly basis airlines are announcing flights to new domestic destinations. Estimates show that the number of domestic air passengers is expected to increase substantially from today’s 70 million to 300 million by 2022, and up to 500 million by 2027.