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Regional airlines coming soon, says Praful Patel

NEW DELHI: To promote air connectivity in non-metro cities, the Government on Thursday announced a separate category of permit for domestic airlines – Scheduled Operator for Regional Airlines.

Unveiling new norms for operating a regional airline, Civil Aviation Minister Praful Patel said the Government would give permit to a carrier to operate primarily between airports of any of the four regions – North, South, West and East/North East. The new classifications and guidelines have been notified and come into force with immediate effect. On grounds of operational and commercial exigencies, the airline companies would be allowed to operate flights from airports in their designated region to all airports in any other region except the metro airports of the other region.

The regional airlines would not be permitted to operate on Category 1 routes . For the purpose of the new policy on regional airlines, the metro airports would be Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad.

In view of the fact that the southern region has three metro airports, the regional airlines of the southern region would be allowed to operate between the designated metros of the region, the notification said. “A regional airline can touch one metro in a region and fly to other smaller cities. They will continue to enjoy waiver of navigation, parking, landing charges and get Aviation Turbine Fuel (ATF) on concessional rates in terms of reduced duty of four per cent. All these concessions are available to aircraft of 80 seats or less irrespective of the fact whether they have jet engines or turbo prop and have a take-off mass of less than 40,000 kg,” Mr. Patel said.

For starting a regional airline, the company would have to acquire at least three aircraft within a year and at the end of two years, it would be required to operate with a minimum of five planes. The paid up capital should be Rs.30 crore for aircraft of and above 40,000 kg take-off mass, up to three aircraft.

The addition of each aircraft would need additional Rs.10 crore subject to a maximum of Rs.50 crore after which no further enhancement of equity would be required. For take-off mass below 40,000 kg, up to three aircraft a paid up capital of Rs.12 crore and for further two aircraft total paid up capital of Rs.20 crore will be needed.

Describing it as a step forward for the growth of civil aviation, Mr. Patel said that the advent of regional airlines would also fuel growth of infrastructure and boost travel and tourism all over the country. He did not rule out the possibility of regional airlines forging inter-line arrangements with bigger scheduled national carriers.

“We are taking a holistic approach and preparing the framework for tomorrow. It will also encourage growth of merchant airports and spur State governments into action as all of them want to have more airports and increase air connectivity in their respective regions. Growth in Tier Two and Three cities will also be on fast track due to better connectivity,” the Minister said.

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