Regional airlines to fly on sops

NEW DELHI: The government on Thursday initiated steps to create a separate category of airlines which will connect small cities and towns with small aircraft. It also decided to give them sops, like waiver on some aviation charges, as part of its efforts to give a thrust to regional air connectivity.

"The ministry has today notified a separate category of permit, called scheduled operator permit for regional airlines, to promote more equitable distribution of connectivity across the country," civil aviation minister Praful Patel told reporters here.

As per the notification, a new category of permit will be issued to airline firms operating turbo-prop and 80-seater planes and helicopters. The permit to operate as regional carrier will be applicable for fixed wing as well as helicopter operators.

The companies will have to undertake operations primarily between airports of any of the four regions — north, south, west and east & north-east. The regional carriers will be allowed to operate in their designated region having connectivity with their respective metro airport.

On the basis of operational and commercial exigencies, the companies will be allowed to operate flights from airports in their designated region to all airports in any other region, except the metro airports of the other region. The regional carriers in the south will be allowed to fly between the all three metro airports namely Bangalore, Hyderabad and Chennai.

The airlines will have to acquire three aircraft within one year and five at the end of two years. The paid-up capital of the regional carrier with three aircraft having take-off mass above 40,000 kg will be Rs 30 crore.

Each additional aircraft will require Rs 10 crore subject to a maximum of Rs 50 crore beyond which no further equity will be required. Airlines with take-off mass below 40,000 kg will be required Rs 12 crore as start-up capital.

The regional airlines will not be permitted to operate on category-I routes of the route dispersal guidelines. “In future if a regional airline wants to get permission to fly as national carrier they would be allowed to do so,” Mr Patel said, adding existing scheduled operators will not be allowed to get advantage of the policy on regional airlines.

“We will look into the case if existing scheduled operator wants to float their subsidiary as regional carrier,” he said. Asked if there was enough infrastructure to support the regional carriers, Mr Patel said, “By the time regional carriers will get a footing, airport infrastructure will be in the place.”