Pitching for open sky policy and 100 per cent FDI in airlines sector, an industry study on Thursday urged the Government to put in place the proposed civil aviation policy at the earliest and resolve the vexed issue of international flying norms for local carriers.
The joint Ficci-KPMG report on India Aviation 2016 sought finalisation of the long-awaited National Civil Aviation Policy in the letter and spirit and also suggested going for open skies along with 100 per cent FDI in airlines and a final decision on the contentious 5/20 Rule.
“It may cause some pain initially, but will make Indian carriers more efficient, quality conscious, passenger centric and global player,” the report said.
At present, Government allows up to 49 per cent investment by a foreign airline in an Indian carrier. However, it has proposed to hike it to over 50 per cent in the draft policy, unveiled in October last year. The draft National Civil Aviation Policy (NCAP), has presented many interesting proposals to promote growth in the aviation sector and its vision is to enable 300 million domestic ticketing by 2022, although ambitious, highlights the hidden potential of the Indian aviation sector.