The government plans to encourage small airlines -- those operating only small aircraft, that too on regional routes -- by relaxing norms and exempting them from payment of user charges.
As per a policy under consideration, small and regional airlines will not have to pay airport and navigation charges in the first year of their operations. The government intends to define small aircraft as those with a seating capacity of 80 or less.
To encourage operations to hitherto unconnected cities and towns, the first airline starting operations in such cities will be exempted payment of all airport and navigation charges, at both the originating airport and the new city of operation.
These airlines will operate under an entirely different set of norms, including those for a smaller fleet size, lower networth, and less maintenance infrastructure.
Under the plan, any airline operating exclusively on regional routes and between a regional centre and metro airports will also get these sops.
The airlines can start operations with a minimum fleet size of five aircraft and an equity base of Rs 20 crore (Rs 200 million). Compared to this, airlines operating large aircraft on various routes need at least five aircraft and Rs 50 crore (Rs 500 million) as equity when they launch operations.
The present route dispersal guidelines, which make it mandatory for airlines to operate services on all routes, are also likely to be waived for the small airlines.
Similarly, to promote helicopter and amphibian aircraft (aircraft that can land on both water and earth) services, a separate package will be announced.
According to civil aviation ministry officials, the existing rules and regulations would be revised to encourage use of helicopters by airlines for high-speed, point-to-point services, particularly for tourism, adventure sports, emergency medical services, and law enforcement.