Civil Aviation Minister Ashok Gajapathi Raju on Thursday ruled out capping fares to deal with steep rise in airfares because that would also push the floor prices
“On capping airfares, we did analysis which showed that 1.7 per cent of the tickets sold were of high cost. So, the last minute high price of ticket is a matter of concern. But we should not land up in a situation that pushes price of over 90 per cent of passengers for the benefit of 1.7 per cent, said Raju while inaugurating ‘9th International Conference on Indian Civil Aviation & Tourism,’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
While addressing the summit, Rajiv Nayan Choubey, Secretary, Ministry of Civil Aviation said, “the civil aviation policy is just the beginning. We wish to stay ahead of the growth curve and if we fall behind the growth curve, for example as it happened in case of urban development in the country, there will be aviation chaos in skies, airports....All that we must do in order to ensure that we stay ahead of the growth curve”.
There are couples of areas which require immediate attention like how to reduce the cost of leasingIJ If the cost leasing remains high either because of capital or any other procedural requirement, the regional connectivity may find difficulty in taking off so we are committed to exploring ways to reduce the cost of leasing, added Choubey.
Choubey further said if the crude price remains soft for the next 4-5 years, regional air connectivity would have found very strong roots in India.
The Civil Aviation Ministry would look at the possibility of utilizing certain unused airports for the purpose of parking aircraft and use aerodromes for plane-breaking or dismantling of old aircraft. There are around 400 unused airports and airstrips across the country, said Choubey.
He said, in the last 4-5 months, we interacted with the aircraft manufactures from all over the world where they could clearly see the scope of hundreds of small planes coming to the country in next 3-5 years.
To sell aircraft in India, sell an eco-system and should have elements which are excellent aircraft and fuel efficient. Secondly, it should also have maintenance facilities which should be created in country or maybe tie up with MRO’s in the country and make sure that the maintenance happens in the country.
Third, they must also come with the training infrastructure for the cabin crew and for cooperate groups. They must tie up again with several institutes which are already here or set up their own. last, they must bring very attractive leasing packages, said Choubey .
Ajay Singh, Chairman & MD, Spicejet limited said, Aviation in India will grow only if we are able to constantly work to reduce the cost of aviation in India. We have to bring down the cost or fares and stimulate this market with low fares. The 20 per cent growth we have seen today in the consequence of the reduction in fares from last year to this year and that must continue if you want to see sector growing.