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Charter operators may put small towns on aviation map

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Charter operators may put small towns on aviation map

NEW DELHI: The aviation ministry is planning to allow non-schedule operator permit (NSOP) holders or charter operators to have a timetable like schedule airlines and fly from metros to non-metros and within small towns, in a move that is aimed at bringing flying within the common man's reach. With 126 NSOPs in India -which include India's biggest corporates like Reliance, Adanis, Tatas and Jindal Steel -this hitherto unserved sector could witness an unprecedented spurt.

"Those who wish to convert will have to commit a minimum number of flying hours on each aircraft as they will be allowed to rent out their planes for charter also," said an aviation source.

The new aviation policy be ing finalised by aviation secretary R N Choubey will have the complete blueprint of this ambitious plan. But it is learnt that the SCAs will have to bid for routes, in which even schedule airlines can participate.

How will rates be kept at affordable levels for this new category of airlines? The aviation ministry is planning a levy of 2% on all international and domestic (except on re mote routes and regional flights) tickets sold in India to create a regional connectivity fund. The Centre and states will jointly have a viability gap funding (VGF) for each city .

"For instance, the government can say anyone flying to a relatively small town like Moradabad or Ajmer will get Rs 2,000 per seat for 50 seats a day . Airlines will bid for these routes and the lowest bidder will get the same. Fares on non-metro and metro to small town routes will be capped at between Rs 2,000 and Rs 2,500.So airlines will charge this amount from flyers and get VGF," said the source.

The government aims at luring NSOPs getting relatively small planes like 20-seaters or turboprops to avail of this scheme. Previous governments tried very hard that schedule airlines induct small planes into their fleet for improving regional connectivity .But it did not have much success with the big boys.

"The concept of SCA will be an enabling provision that will allow charter operators, especially those belonging to corporates with deep pockets, to enter the aviation business.India's domestic traffic is growing at almost 20% and the next big round of growth will come from small towns. It will be a business opportunity hard to miss," said an official.

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