Our correspondent
Government of India today gave its approval to the new Civil Aviation Policy with an aim to increase regional air connectivity, and ease rules for airlines to fly overseas. The Policy lays focus on regional connectivity with an aim of providing affordable aviation services in Tier-II and Tier-III cities.
It will help bring down the prices of air tickets by giving exemptions including service tax, customs duty, landing and parking fee and VAT.
Under the policy, the airfares have been fixed at 2,500 rupees for one-hour long flights. Briefing reporters, Union Minister Ravi Shankar Prasad said that the policy has quashed the rule which restricted companies from flying abroad unless they have flown in India for 5 years and have fleet size of 20 aircraft.