The government is expecting an investment of $6 billion (approximately Rs 40,000 crore) in the airports sector and is hoping to see a growth of over 30% in passenger numbers in five years. Out of the total estimated amount, around $1 billion would be used for reviving airports and about $3 billion would be for upgrading aerodromes owned by the Airports Authority of India (AAI).
To boost the aviation sector, recently government has come out with new civil aviation policy with various measures for improving regional air connectivity and developing airports, among others. It also seeks to revive un-served and under-served airports as well as improve regional air connectivity under the Regional Connectivity Scheme (RCS). According to the new civil aviation policy, around 75 out of 450 airstrips/airports have scheduled operations and revival of the remaining ones would be demand driven, depending on firm demand from airline operators. Also, no-frills airports would be developed at an indicative cost of Rs 50-100 crore, without insisting on its financial viability.
During the January-July period this year, the number of passengers carried by domestic carriers jumped 23% as compared to the year-ago period. In July alone, the domestic air passenger traffic soared nearly 26% registering double-digit growth for the 24th consecutive month. Civil Aviation Secretary R N Choubey said that as the domestic aviation space is projected to see substantial growth there would be need for around 100 small aircraft in the next three years. He further said the government is looking to amend regulations with respect to certain aspects of leasing of aircraft and added that the Ministry would amend rules to make sure lessors can take back aircraft in case of default in line with Cape Town Convention. It provides the protocol to be followed with regard to leasing of aircraft equipment, including the aircraft.
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