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PM raises concern on predatory airfares by airlines: Civil Aviation ministry


Thursday, August 27, 2015

5/20 rule will be replaced by new rules soon:  Mahesh Sharma, MoS
Prime Minister, Mr. Narendra Modi has shown concern regarding the predatory airfare prices by domestic airlines, said Dr Mahesh Sharma, Minister of State, Ministry of Civil Aviation at an ASSOCHAM event held in New Delhi today.
The Prime Minister has recently discussed aviation sector issues with aviation minister, finance minister and bureaucrats. The outcomes of the meeting will be in the public domain very soon. In his meeting, Prime Minister has asked the aviation ministry to look and check the surging airfare prices, said Dr Mahesh Sharma, Minister of State, Ministry of Civil Aviation while inaugurating ‘8th International Conference on  Indian Civil Aviation & Tourism,’ organized by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
He further said, the aviation ministry is looking to regulate predatory airfare prices by airlines. The airlines need to reduce fares and not hike them particularly when it comes to emergency travel like in medical emergency. There has been wide consultation and discussion with Prime Minister on 5/20 rules and mythology has also found out.  “5/20 rule will be re-addressed with a certain changes or new rules”, said Civil Aviation Minister Mr. Sharma at an ASSOCHAM event.
The ministry of civil aviation has also discussed a complete ‘Open Sky Policy’ for our country that comes within a radius of 5,000 km or above and the guidelines have been framed on that issue, said Dr. Sharma.
While inaugurating the ASSOCHAM conference on Civil Aviation & Tourism here, Mr Ashok Gajapathi Raju Pusapati, Union Minister, Ministry of Civil Aviation said, Ministry of civil aviation is in the process of developing a comprehensive Civil Aviation Policy which shall provide a long term road map for the aviation sector.
“Aviation and tourism have an inter-dependent relationship. The tourism market grows by itself with new connections, and a popular destination attracts the operation of more flights. The rapid growth of the tourism industry, both domestic and international supported by the entry of airline operators offering low fares, has led to the rapid growth of air traffic in India”, said Mr. Gajapathi Raju.

“The growth of aviation & tourism industry also has significant ripple effects on other segments, particularly in the services and hospitality sectors”, said Civil Aviation minister.
Mr. Gajapathi Raju Pusapati further said, the ministry is working on an integrated inter-ministerial strategy to promote India as a regional aviation hub for both passenger and air cargo. He said, aviation can provide stellar employment opportunities for our youth. The ministry is also working to provide opportunities for skill development in the aviation sector and encourage industry to develop and assist in policies to ensure a steady and qualified pipeline of talent in aviation.

Mr. Ajay Singh, Chairman & Managing Director, SpiceJet Ltd said, the Spicejet will add 5 new aircrafts in airline, 40 new schedules for the upcoming winter season. He further said, the current macro economics and aviation picture fundamentals are right in place.
At the programme, Ligare was given the award for being the most versatile company in aviation, SafeExpress, the best air cargo logistics, ‘Boeing’ the best global aviation company, “Indigo”, the best Airline (national) and “Emirates”, the best Airline (International) and Frankfinn, the best training institute. ITC received the Best Business Hotel followed by “Eximius Business Services” (Most Dynamic Aviation Company), Pawan Hans for Best General Aviation Company and Yes Bank for best banker promoting tourism.

Mr. Rana Kapoor, MD & CEO, YES BANK, and President, ASSOCHAM said, “A world-class civil aviation sector will facilitate seamless flow of investment, trade and tourism, with significant multiplier effects throughout the economy. Buoyed by the resurgent optimism in the economy, I firmly believe that a new Civil Aviation Policy focused on realizing the vision of ‘Make in India’ will enhance regional air connectivity, transform key airports at existing metros into international hubs, create more airports through PPP mode, establish a strong domestic MRO sector and improve passenger facilitation. This will provide fresh impetus to the sector which is expected to become the 3rd largest aviation market by 2020, thereby contributing towards India’s socio-economic transformation.”

Other who also spoke during the conference were Mr Machendranathan, Chairman, Airports Economic Regulatory Authority of India (AERA), Dr B.P. Sharma, CMD, Pawan Hans Limited, Mr Pratyush Kumar, President, Boeing India, Mr Pawan Kumar Agrawal, President, Corporate Finance, Yes Bank, Mr K Narayana Rao, Chairman, National Council on Civil Aviation and Mr D.S. Rawat, Secretary General, ASSOCHAM.


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