The National Civil Aviation Policy aims to prepare for 30 crore domestic and 50 crore international passengers by 2027. Key objectives include ensuring safety through technology, enhancing regional connectivity through infrastructure development, and promoting the aviation sector through cargo, maintenance, and skill development. The policy introduces a regional connectivity scheme to subsidize flights to small towns, liberalizes bilateral rights, and transitions airport tariffs to a hybrid model using 30% of non-aeronautical revenues. It also reforms ground handling, eases maintenance rules to grow the MRO sector, and develops aviation education.

1. Lets Start!
 What do You understand by
Hybrid Till Model related to Civil
Aviation Tariff.
 What is 5/20 Rules wrt Aviation in
India? Analyse the changes
being proposed in New Policy.
 What are the Major Features of
NCAP? Explain its possible
impact on Indian Economy.
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2. National Civil Aviation Policy
Instructor: Harveer Singh
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3. Vision
To prepare the ground for 30-
crore domestic ticketing by
2022 and 50 crore by 2027,
besides targeting international
ticketing at 20 crore.
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4. Objectives
 i) Ensure safe, secure and sustainable aviation
industry through use of technology and effective
monitoring
 ii) Enhance regional connectivity through fiscal
support and infrastructure development.
 iii) Enhance ease of doing business through
deregulation, simplified procedures and e-
governance
 iv) Promote the entire aviation sector chain:
cargo, MRO, general aviation, aerospace
manufacturing and skill development.
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5. Regional Connectivity Scheme
 Cap of 2500 per flying hour to small town
route.
 Currently around 75 out of 450
airstrips/airports have scheduled operations.
 “demand driven” base Revival of the
remaining airstrips.
 grand plans to revive 50 airports in the next two years.
 2-per cent cess on all domestic trunk route
tickets as well as international tickets.
 the funds collected through the cess, which the
government expects to be Rs.1,500 crore a year,
will be used to subsidise flights on small town
routes (RCF)
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6. Route Dispersal Guidelines
 Uttarakhand and Himachal Pradesh included in Category
II
 Category I to be rationalized based on a transparent
criteria,
 i.e., flying distance of more than 700km, average seat factor of
70% and above and annual traffic of 5 lakh passengers
 The percentage of Cat.I traffic to be deployed on CATIII
will be 35% of Cat-I.
 There view of routes will be done by MoCA once every5
years
 Withdrawal or revision of domestic operations to and
within North East Region etc, subject to full compliance of
RDG, can be done under prior intimation to MoCA at
least three months before withdrawal or revision of the6 /HARVEERSIR

7. Bilateral Traffic Rights
 GoI will enter into 'Open Sky' ASA on a reciprocal
basis with SAARC countries and countries located
beyond 5000 km from Delhi
 ·For countries within 5000 km radius, where the
Indian carriers have not utilised 80% of their capacity
entitlements but foreign carriers /countries have
utilised their bilateral rights, a method will be
recommended by a Committee headed by Cabinet
Secretary for the allotment of additional capacity
entitlements.
 Whenever designated carriers of India have utilised
80% their capacity entitlements, the same will be
renegotiated in the usual manner.
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8. Ground Handling Policy
 The airport operator will ensure that there will be
three Ground Handling Agencies (GHA) including Air
India's subsidiary/JV at all major airports as defined in
AERA Act
 At non-major airports, the airport operator to decide on
the number of ground handling agencies, based on the
traffic output, airside and terminal building capacity
 All domestic scheduled airline operators including
helicopter operators will be free to carry out self-handling
at all airports through their regular employees
 Hiring of employees through manpower supplier or
contract
 workers will not be permitted for security reasons
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9. Airport PPP/AAI
 Encourage development of airports by
AAI, State Governments, the private sector or in
PPP mode
 Future tariffs at all airports will be calculated on a
'hybrid till' basis, unless specified otherwise in
concession agreements. 30% of non-aeronautical
revenue will be used to cross- subsidise aeronautical
charges.
 Increase non-aeronautical revenue by better
utilisation of commercial opportunities of city side
land
 AAI to be compensated in case a new greenfield
airport is approved in future within a 150 km radius
of an existing unsaturated operational AAI airport.9 /HARVEERSIR

10. Aviation Security, Immigration and
customs
 MoCA will develop 'service delivery modules' for aviation
security, Immigration, Customs, quarantine officers etc in
consultations with respective Ministries/Departments
 ·Allow Indian carriers to provide security services to other
domestic airlines subject to approval of BCAS
 Encourage use of private security agencies at airports for
non- core security functions to be decided in consultation
with MHA
 Such agencies should be registered under the Private
Security Agencies (Regulation) Act, 2005 and will also be
separately accredited by BCAS
 Subject to minimum benchmarks being met, security
architecture at the different airports will be proportionate
to the threat classification and traffic volume.
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11.  Safety violations will be treated with zero-tolerance.
 Directorate General of Civil Aviation (DGCA) will
strive to create a single-window system for all
aviation related transactions, queries and
complaints.
 The services rendered by DGCA will be fully
automated by April 1, 2016.
 DGCA will carry out a comprehensive review of all
civil aviation requirements (CAR) once every 5 years
starting from FY 2016-17.
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12. Maintenance, Repair and Overhaul
 The MRO business of Indian carriers is around Rs 5000
crore, 90% of which is currently spent outside India.
 In the budget for 2016-17, customs duty has been
rationalised and the procedure for clearance of goods
simplified. Further incentives proposed in the policy to
give a push to this sector:
 MoCA will persuade State Governments to make VAT
zero-rated on MRO activities
 Provision for adequate land for MRO service providers
will be made in all future airport/heliport projects where
potential for such MRO services exists
 Airport royalty and additional charges will not be levied
on MRO service providers for a period of five years from
the date of approval of the policy
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13. Aviation Education and Skill Building
 Estimated direct additional employment requirement
of the Civil Aviation Sector by 2025 is about 3.3 lakh
.
 All training in non licensed category will conform to
National Skill Qualification Framework standards.
 Support to the Aviation Sector Skill Council and
other similar organisations/agencies for imparting
skills for the growing aviation industry .
 There are nearly 8000 pilots holding CPL but who
have not found any regular employment. MoCA will
develop a scheme with budgetary support for Type-
rating of Pilots.
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14. Aviation Tariff
 Tariff at all future airports will be calculated
on a 'hybrid till' basis. Thirty percent of
non-aeronautical revenue will be used to
cross-subsidise aeronautical charges.
 Ministry of Civil Aviation and Ministry of
Defence to ensure commercial aero-
manufacturing is covered under defence
off-set requirements.
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15. Code Sharing Agreement
 Indian carriers will be free to enter into code-
share agreements with foreign carriers for any
destination within India on a reciprocal basis.
 No prior approvals from MoCA will be
required. Indian carriers simply need to inform
MoCA 30 days prior to starting the code-share
flights.
 A review will be carried out after 5 years to
consider the requirement of further
liberalization in code-share agreements and
to drop the requirement of reciprocity.
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16. Hybrid Till Model
 In the single till, all the earnings from both aeronautical
and non-aeronautical sources are added and then the
charges are decided.
 In double till, earnings from only aeronautical services
are considered while deciding the rates.
 Under the hybrid model, the airport operator adds a part
of the non-aeronautical (duty-free shops, hotel,
restaurant, among others) revenue and the total revenue
from the aeronautical (landing, parking and ground
handling charges) side to compile total earnings. The
aeronautical rates are decided on the basis of total
earnings. In the case of the airports in Delhi and Mumbai,
30 per cent of the non-aeronautical revenue is added in
the total revenue.
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17.  Currently the Hybrid Model is followed in Delhi and
Mumbai. With this Policy, It would be extended to all
the airports.
 Global airlines body IATA expressed "concern" over
the hybrid model for fixing charges at airports built
under PPP model, saying it would make Indian
airports more expensive and render tariff regulator
"toothless"
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18. 5/20 Rule
 Domestic Flying Credit (DFC): Available
Seat Kilometer (ASKM) deployed by the
airline on domestic routes divided by 01
crore.
 3 Suggestions for 5/20 Rules
 5/20 Rule may continue as it is, OR
 ii) 5/20 Rule will be abolished with immediate
effect,
 300 DFC for SAARC, 600 DFC for Global Ops.
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19. Final Policy Statement on 5/20.
 All airlines can now commence international
operations provided that they deploy 20 aircraft or
20% of total capacity (in term of average number of
seats on all departures put together), whichever is
higher for domestic operations.
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20. Indian Aviation: Here and There
 there are as many as 125 Airports, which
include 11 International Airports.
 The Airports Authority of India
(AAI) manages all major airports throughout
the country.
 Indian airlines carry nine times as many
passengers today as they did before
deregulation in 1994. No-frills carriers,
unheard of two decades ago, provide two-
thirds of domestic capacity.
 IndiGo, whose bulging order-book of 430
aircraft outweighs any other order in recent
times.
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21.  Currently India has 33 "non-
operational" airports, according to the
Airports Authority of India. Popularly
dubbed “ghost airports”.
 India to build 200 low-cost airports
over the next 20 years
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22. SOURCE: IBEF22 /HARVEERSIR

23. Final Word
 The ICAO estimated that $100 spent on air
transport produce benefits worth $325 for the
economy and 100 additional jobs in air transport
result in 610 new economy wide jobs
 4.5% of global GDP to the air transport
component of civil aviation
 Increasing disposable incomes, fall in prices of
aircraft turbine fuel (ATF), increase in tourism,
and visa reforms have placed India in a unique
position.
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24. A Big Thank You 
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