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A new category of airlines called scheduled commuter airlines proposed in India’s first civil aviation policy might find it hard to fly given the fine prints, according to ICRA.
“Nuances of the policy (primarily about route dispersal guidelines, RDG2) will have to be understood before private players start investing,” said a note from ICRA talking about the challenges that remain for these new category of airlines.
According to it, adherence to safety guidelines by comparatively smaller airlines would be another big challenge for the industry.
The Civil Aviation Ministry has proposed the new category of airlines which are essentially lower capacity carriers connecting remote locations. The airlines are expected to be low-cost carriers given that they would benefit from relaxed guidelines, fiscal support and probable subsidy support.
The airlines can have aircraft having maximum All Up Weight (AUW) not exceeding 40 tons while the minimum equity capital requirements would be on the basis of number and size of aircraft in the fleet. There would be a prescribed minimum number of aircraft to maintain regularity of operations and the operators may additionally carry out domestic charter operations.
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