New Aviation policy opens up competition- more players can fly overseas

The new aviation policy brought by the government introduces liberalization on multiple fronts and opens up fresh competition. Any domestic company can be eligible for overseas flight license when they acquire 20 aircrafts or 20 percent capacity compared to a wait of five years after starting domestic flight.

New simplified regulation brings Vistara and AirAsia India as eligible for making international flights.

Another step is an open sky policy on the international front. For SAARC Countries and for those locations which has a distance of above 5000km, integrational flights can be made on reciprocal basis. Reciprocal arrangement implies foreign airlines can make flights to India by extending equal number of seats to Indian operators.

On the domestic front, the policy makes a cap of Rs 2500 per one-hour flight. The measure will enhance regional connectivity between Tier II and Tier III cities. For Helicopters, no approval is needed from the ATC for flying below 5000 feet.