No regulation of fares charged by airlines: Key points from draft civil aviation policy

New Delhi: The civil aviation policy is expected to come into force from January next year after stakeholder consultations are finished and clearance obtained from the Union cabinet on certain provisions. Here are the eight things one should know from the draft policy unveiled today:

1• State owned helicopter operator Pawan Hans Helicopter Ltd and airport operator Airports Authority of India are to be listed on the stock exchanges. The government could divest up to 20 percent stake in each and divestment may take up to six months.

2• AAI expects to double net profits to Rs 1,400 crore in FY14 and Pawan Hans is also a profitable firm. The government may earn well from divesting stake in both.

3• On airport modernisation via PPP mode, only two of earlier six airports to be given on 30 year lease to private developers. These are airports at Jaipur and Ahmedabad. Guwahati and Lucknow are put on backburner.

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4• For airports at Kolkata and Chennai, private parties will be given only managemnt contracts for a fixed fee, no lease. AAI already spent huge amounts of both airports.

5• Union Civil Aviation Minister Ashok Gajapathi Raju is clear on scrapping the 5/20 rule but wants airline to increase flights to remote areas within India. No final decision on this.

6• No clear roadmap for Air India turnaround. Yet another committee to be formed to decide its fate. Will disinvestment be an option? Who will want to buy stake in a loss-making entity anyway?

7• Raju to intensify efforts to get states to lower ATF taxation which ranges between 4-35 percent. Will speak to petroleum minister to get entire benefit of softening crude prices passed on to ATF.

8• No regulation of fares charged by airlines though minister promised to look into allegations of opaque charges by airlines such as 'fuel surcharge'.