New Delhi: The Union Cabinet at its meeting has cleared a new Civil Aviation Policy. It has several passenger friendly rules. Here are 10 highlights for a quick read:

  • Rs 1200 fare cap on 30 minute flights.

  • Rs 2500 fare cap on 60 minute flights.

  • 5/20 rule replaced by 0/20 rule: Airlines can now fly foreign sector if it has 20 aircraft and without flying domestic sector for 5 years. Big boost for start-up airlines. More competition.

  • Boost for domestic aviation sector: Auctioning of unilateral traffic rights, tax incentives.

  • 2 per cent levy on all air tickets to fund regional connectivity scheme and providing viability gap funding for airlines to encourage operate on regional routes.

  • DGCA will create a single-window system for all aviation-related transactions, queries and complaints. DGCA also intends to ensure real-time safety tracking and prompt incident reporting.

  • Domestic airlines will be free to enter into code-share agreements with foreign carriers for any destination within India on a reciprocal basis. International code share between Indian and foreign carriers will also be completely liberalised.

  • Government will liberalise the regime of bilateral rights, leading to greater ease of doing business and wider choice to passengers.

  • Air strips will be refurbished, depending on demand, as no-frills airports. This will be done at a cost not exceeding Rs 50 crore, mostly through AAI.

  • Riding on news of new aviation policy, airlines stocks surged by nearly 5 per cent on Wednesday.

  • Work for new civil aviation policy began 10 years ago but did not move. NDA introduced fresh draft in October 2015.