But while the broad policy looks rosy, one has to wait for the finer details and their implementation. Take, for example, the proposed push for regional connectivity by giving flying licences to new small operators with just one or two aircraft in their possession and capping the air fare at Rs 2500 for a flight within one hour. Aviation being a capital intensive business, it remains to be seen how many entrepreneurs come forward for the new venture.

The Government is promising subsidy to these yet to be born low cost regional carriers in the form of reduced airport charges plus reimbursement of certain fixed costs which is yet to be finalized. The Civil Aviation Ministry officials have said the nitty gritty of these subsidies and other details will be announced within ten days. Till then, the entrepreneurs will have to keep their fingers crossed.

It is certain that the terms and conditions have to be liberal in order to attract investors in the sector. But given the past history of managing subsidies in the government, the Civil Aviation ministry needs to be cautious. In the fertilizer sector, for example, there is a massive subsidy arrears amounting to Rs 45,000 crore (forty five thousand crores) which the Government has to pay to the fertilizer companies. This is mostly due to bureaucratic delays and cumbersome procedure. The regional carriers will just fall flat within no time if promised subsidy does not reach them on time.

Reports quoting civil aviation ministry officials suggest that the Government may give regional licence to a carrier even with just one aircraft. This will be downright risky. How can the carrier with just one aircraft maintain its schedule of operations? The aircraft has to compulsorily go for mandatory maintenance and technical checks for its airworthiness as per DGCA guidelines. The carrier, therefore, must have at least two aircraft to begin with to sustain scheduled operations.

The Government has now announced 100 per cent foreign direct investment (FDI) in the aviation sector by non-airline entities and foreign firms. At a time when Indian aviation sector is growing at 20 per cent annually, it is expected that foreign companies will show interest in the sector. There are many aircraft leasing companies in the West looking for business. Of course, there is need to improve the environment of doing business with ease for which India has had an adverse image. No less than Prime Minister Narendra Modi himself has been promoting the ease of doing business in India whenever he interacts with foreign investors.

FDI from foreign airlines has been rightly capped at 49 per cent so that they do not have controlling stakes. However, under the new norms, there is no stopping them if they come via other foreign companies involved in non-airline ventures.

Overall, the policy is expected to unleash a whole new energy and push in the aviation sector which should promote healthy competition. Consider, in retrospect, the revolution the telecom sector witnessed after bringing in competition. Airline is just another service sector waiting to be exploited fully. What is needed is a healthy business environment.

Expansion in the sector will mean greater business and employment opportunities. Tourism will further grow in the country with better connectivity to far flung areas.

Upto 300 airports/airstrips across the country now without scheduled flights can be operationalised with small aircraft of 20-30 seat configuration. There are so many tier II and tier III towns and cities waiting for air connectivity.

The new policy rightly involves the state governments which own the airstrips in terms of their upkeep and maintenance. Since the states will be major beneficiaries, it is in their own interest to keep them going and improve further. The centrally controlled Airports Authority of India (AAI) could be involved in airports management for a reasonable fee from the state governments. Many state governments have their own civil aviation wing which can also manage small airports/ airstrips. (IPA Service)