Aviation Policy – Regional Connectivity Scheme - Transit within India - Reduce Cost

•Congrats to Aviation minister Gajapathi Raju, Mahesh Sharma and Choubey and his team for doing a great job for aviation policy. The entire team seems to be over sincere in their efforts. Ensure you send a copy to all global aviation companies across the globe and respond immediately to their queries and invite them to fly to India. At least ask them to start with one flight, Chinese, American and European airlines must be your primary request since it will bring tourists.
•RCS failed to bring a policy to help with connecting with top 25 tourist destinations in India and focussing on its nearest airport. Example: Many from north India want to visit tourist spots in Tamil Nadu like Ooty or kodaikanal or Kanyakumari. The nearest airport is Madurai but there is no direct flights from Kolkata or Delhi to Madurai. So if they take transit flights from Kolkata to Chennai and then to Madurai it will cost around 9,000 a middle class cant afford. What is the solution that RCS gives for such problems of transit flights within India so people waste 2 days in train itself to reach these places due to high cost of airfares? Will RCS solution of Govt reduce it to Rs.3,500-4000 maximum
•In case a state govt doesn’t come forward to take part in RCS the central govt should not drop the RCS concept for the state nor stop development of airports in the state. Generally few states might be apprehensive but Central govt must continue with the scheme by putting in the share of central govt and airport operators even if state govt don’t reduce VAT. The end focus are the public if a state govt doesn’t come forward also the scheme must start but keep engaging with the concerned state govt regularly by letters and talks to bring them on board. The main focus is don’t leave out any state because a state govt didn’t come forward. I see in the entire RCS it is mentioned that a share of cost is with state govt.
•If the RCS flights just connect to the nearest state capital the cost of transit flights within India will be high. For example if Pondicherry is brought under RCS then the Pondicherry to Chennai flight will be Rs.2500 with check in and check out at airport to be 3 hours but if we go by bus it costs Rs.150 in less than 4 hours. The RCS should focus on connecting to major metros across the country like if Pondicherry connects to Mumbai it will be useful and also save costs in transit flights like going from Pondicherry to Chennai and from there to Mumbai it will cost around Rs.7000 which will make it unviable and again Pondicherry airport will be in closing stage. The same case will happen to all. Hence RCS must focus on connecting at least twice a week to Mumbai or Delhi or Kolkata away from the nearest metro. For this route if RCS is cheap it will help for the 2 and half hour journey with funding with central govt and state govt. The RCS route must not be decided by Govt, Aviation Ministry, state govt, passenger associations and airlines together.
•The landing charges in destination airports also must not be collected for airports from which flights depart. If a flight starts from Pondicherry to Mumbai. There should not be any landing charges in Mumbai also. The actual cost is at destination airport only.
•Please do discuss with all airline operators and each state govt on the RCS since they will be the core to the growth of traffic. Releasing policy is easy but Choubey and team with minister must talk to each state govt directly and know their comments for the success of the scheme.
•Allow foreign airlines to connect directly to airports which are unused to promote more growth in traffic.
•Will Air India intend to connect the routes even if any airline doesn’t come forward to connect those routes? Will Air India make attempt to start flights in low cost model without any food included in fares to try new routes once a week. Anyway passengers will buy inside aircraft if needed.
•The viability gap funding can be raised by a) Taking 5% of the basic fare of international flights or maximum of Rs.300 to contribute to VGF of RCS routes. International travellers must first line of target to get funding b) Taking 2% of basic fare of domestic flights or maximum of Rs.200 to VGF c) AAI increasing the charges for international flights by Rs.50 as flat rate only for international flights in airport development charge and this excess must be moved to separate fund to develop old airports and must not be put in general funding of AAI.
•Under RCS routes at least once a week – one route must be to state capital, one must be to nearest state capital outside state, one must be either Delhi/Mumbai/Chennai or Kolkata out of these any 3 farthest routes must be connected, once must be to top 25 tourist destination in India. Will central govt create corpus of Rs.500 initially
•The flights across any part of India should max out to Rs.4000 by Govt asking Air India to operate low cost model flights to new routes,

Airlines 5/20 Policy - Policy Revision Suggestions

•5/20 Relaxation Effects: Airlines who are subsidiaries of foreign companies with base outside India will use relaxation in policy to fill fuel outside India and continue to use same aircraft for domestic travel instead of fuelling in India as cost of ATF fuel is high in India. Example: Air Asia with base as Malaysia and Petronas a Malaysian govt company will benefit, Singapore airlines also will benefit and Indian airline companies will not be profitable. This is a hidden point behind pushing of rules by foreign airlines to get foreign routes to profit faster and we will lose revenue from sale of fuel from public sector oil
•5/20 if relaxed will put govt in legal battles as many companies which are struggling to get out of debt. So govt should setup a separate committee to review 5/20 policy alone since any govt decision will be seen as favouring some companies like air Asia and vistaraleading to problems at parliament and legal later. Even Air India will lose market severely if rules are relaxed so easily for new comers without much sub clauses
•Generally more the aircrafts the employment will be high and growth and revenue but years don’t matters so aircrafts policy must be minimum 15 aircrafts. The below ideas will be simple and neutral stand to old airlines and protect public from reduced domestic flights by operating more flights abroad in near future. At the same time give opportunity for new ones to try to enter Indian market with more aircrafts so that they can get to fly abroad in 3 years which is a short time frame in airline industry for their high investment
•The year rule should be kept at minimum 2 years to check their operation by AAI, passengers, Govt and security and 2 years will promote more airline ventures to try as 2 years is small time frame for them.
•All airlines are plying only in heavy demand route and smaller airports don’t have direct flights or very less flights and less growth and loss operations. So flights from these small airports which currently there is not much traffic to foreign airports directly & mainly without immediate transit in India before going to foreign airports should get maximum relaxation in rules like 2/10 will promote travel and revenue to these small airports. These airports list govt must revise every 1 year. The list should not include any airports from which there are any international flights currently or from immediate transit of 4 hours. If airlines really want to fly govt can give Ex: Manali, Tirupathi. But aircraft's increased at 3 per year till 5/20
•Or 3 years/35 or 3 years/40 & aircraft's count should be kept high above current limit of 20 so that domestic traffic is not affected on the verge of foreign trips by these aircraft's to fill fuel at low cost or the count of aircraft's at least close to what existing airlines have without affecting their operations. If 3/30 or 3/35 not viable for them they can wait till 5/20 rule.
•Or 4yrs/30 or 4yrs/25 aircraft's so that new entrants can feel they have less years to go to target and old airlines feel that they got some benefit. If new airlines cant meet then they can wait till 5/20 rule.