The draft civil aviation policy, released by the Ministry of Civil Aviation, on Monday has drawn criticism from experts who said it lacked substance.

“I can’t call this a draft policy. These are broad statements of intent. More depth will be required before policy is formalised,” said Centre for Asia Pacific Aviation (CAPA) Chief Executive Officer (South Asia) Kapil Kaul. “The draft civil aviation policy reads like a feel-good document, bereft of specifics on burning issues like aviation turbine fuel (ATF) taxes, maintenance repair and overhaul (MRO) taxes, airport charges and general aviation. Most of the points are ‘statements of intent’ and are ‘work in progress’ anyways,” said Amber Dubey, Partner and India Head of Aerospace and Defense at global consultancy KPMG.

He said going by the announcements, there would be no ‘open skies’ in India and, hence, bilateral traffic would continue to be constrained by the ability of Indian carriers to deploy equal capacity.

He said there was no mention of the Essential Air Services Fund (EASF) that was supposed to fund loss making routes, as proposed by the government’s own Naresh Chandra Committee in 2003.

“The long-pending Air Navigation Services (ANS) corporatisation is delayed further. There is no concrete policy measure to bring back the MRO revenue that India loses every day. The policy puts no pressure on the Directorate General of Civil Aviation (DGCA) to adhere to time limits for various clearances,” Mr. Dubey added.

As regards to listing of the Airports Authority of India (AAI) and Pawan Hans, there was no proposed timelines, the aviation expert said.

“Overall, the draft civil aviation policy is not very helpful. The dozens of policy suggestions that the industry gave to the Ministry have been ignored. Indian aviation will continue to struggle for relevance, policy support and profitability”, Mr. Dubey added.

However, Ankur Bhatia, Executive Director of Bird Group, welcomed the draft policy stating that at least a beginning has been made.

The Airports Authority of India (AAI) and chopper company Pawan Hans is proposed to be listed on stock exchanges while an “in-house” expert committee will chalk out “future roadmap” for ailing Air India, the draft Civil Aviation policy unveiled on Monday said.

The new draft policy, which came as Civil Aviation Minister Ashok Gajapathi Raju wanted a change from the “opaqueness” of the previous UPA regime, also envisages, six airports, including Delhi and Bengaluru, being developed as international hubs, rationalisation of jet fuel cost and improving regional connectivity among other things.

After quick consultation with stakeholders, the Ministry wants to put in place the policy in action by January next year. “If a policy existed, it was opaque. We want to develop a transparent policy.

If it is opaque, it leads to allegations. Regulations should be meaningful,” Civil Aviation Minister Ashok Gajapthi Raju said. The draft policy also envisages a review of the 5/20 rule, which allows an Indian airline to fly abroad only after they have flown domestic for five years and have a 20-aircraft fleet.

Institutional reforms Rooting for institutional reforms, the draft said AAI will be “corporatised, followed by listing in stock exchanges in order to improve efficiency and transparency”.

Listing of Pawan Hans would also be undertaken with the “same objective”, it said adding a mission mode project will be set up to ensure that organisations under Civil Aviation Ministry are “competitive in terms of efficiency and costs”.

“The Pawan hans is on a different footing. Pawan Hans listing straightaway might make sense (as it is a registered company). For AAI, it is also possible,” Raju said.

Though the minister said the listing could be done within six months, a top official said they have not set any timeframe or how much stake would be divested. An “in-house” expert group will be set up for Air India though the draft does not talk about privatisation.

When asked Raju said, “While some say privatisation is a solution, others say it should remain with the public sector. Another section says the airline should be managed professionally by professional bodies. Why should we close our options? Let us take a conscious decision.

” On whether Air India will be listed like AAI, he said, “If it get listed, I will be happy. Let us see how it emerges,” he said.