Cabinet clears civil aviation policy:Cap of Rs 2500 for hour-long, Rs 1300 for 30-minute flights

Date: June 15, 2016

Airlines Civil Aviation Minister

Union Cabinet approved the civil aviation policy that seeks to make flying affordable, safe and convenient.  Civil Aviation Minister Ashok Gajapathi Raju  said the policy is a “game changer” and that the country’s aviation sector is poised to become the world’s third largest by 2022.


Major points related to it are-

  A cap of Rs 1300 has been decided for all flights of less than 30-minute duration, sources said.
  The government has relaxed the rule according to which only those airlines which have at least 20 aeroplanes and are in operation for minimum five years can fly abroad.
   Airlines will ensure that refunds on cancelled tickets are made within 15 days, even if the bookings were made through agents or portals.
   In case of flight cancellations announced within 24 hours of departure, the compensation amount has been enhanced to up to Rs 10,000.
Refunds will be applicable on all fares, including promotional and special rates.
  A look at the terms of flag carrier Air India revealed that the airline, on a one-way ticket to Mumbai with a base fare of 2,527.00, charges Rs 2,000 towards cancellation if made more than 24 hours before departure. But if it is within 24 hours, the levy comprises basic fare plus airline fuel charge.
  Jet Airways since January last year has a zero penalty rule for cancellations made before 24 hours of departure if the reservation is made through their website or the mobile app.
  The new aviation policy seeks to create an eco-system to handle 300 million domestic passengers by 2022 and 500 million by 2027, and 200 million international travellers by 2027.
   India had seen 139.32 million domestic and over 50 million international air travellers in 2014-15.