Weak air routes to be auctioned

New Delhi : As part of the civil aviation policy, the government plans to do away with the current system of route dispersal guidelines, to be replaced with minimum subsidy biddings. This is aimed at providing subsidy support to a carrier operating at the lowest cost. For this purpose, the government will identify uneconomical routes, decide minimum capacity requirements and oversee the bidding process.
According to civil aviation minister Praful Patel, there is also a need to evolve differential pricing for different time-slots at major airports across the country. Most privately owned airports globally charge a premium on peak-hour landings and take-offs that can range from a few hours to days at times.
Airlines with a fleet of less-than-80-seater aircraft flying regional routes from any one metro airport will be exempted from paying airport and navigation charges for the first five years of operation.
Emphasis will be on developing aircraft maintenance and repair facilities. As a result, the government may allow 100% FDI in this sector.
04/12/06 Atreyee Dev Roy/Financial Express

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