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Relaxation of Norms for FDI in Aviation Sector



Relaxation of Norms for FDI in Aviation Sector 
As per Press Note 12 (2015 Series) dated 24th November, 2015, Department of Industrial Policy and Promotion (DIPP) has enhanced the foreign equity cap for Non-scheduled Air Transport Service and Ground Handling Services from 74% to 100% and have placed these sectors under the automatic route. Further, Regional Air Transport Service (RSOP) has also been made eligible for Foreign Investment upto 49% under automatic route. 


Following three proposals of FDI by foreign airlines to invest in Domestic Scheduled Passenger Airlines have been approved by the Government:

(i) Preferential allotment of 24% of paid equity share of Jet Airways (I) Ltd. to Etihad Airways. (ii) Joint venture company by Air Asia Investment Limites (AAIL, a company incorporated under the laws of Malaysia) 48.951%, Tata Sons Limited (TSL)- 30.019% and Telestra radeplace Pvt. Ltd. (Telestra)- 21.028% in the name of Air Asia (India) Pvt. Ltd.

(iii) Joint venture by Tata Sons Ltd (51%) and Singapore Airlines Ltd (49%) in the name of TATA SIA AIRLINES LTD.

This information was given by Minster of State for Civil Aviation, Dr Mahesh Sharma in a written reply to a question in the Lok Sabha today. 
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Charging of Development Fee 
Mumbai International Airport Private Limited (MIAL) has approached Airports Economic Regulatory Authority of India (AERA) to allow levy and collection of Development Fee (DF) at Chhatrapati Shivaji International Airport (CSIA), Mumbai to the tune of Rs. 518 crores.

MIAL has collected Rs. 252 crores during FY 2012-13, Rs. 328 crores during FY 2013-14 and Rs. 409 crores during FY 2014-15 as Development Fee.

MIAL has sought levy and collection of additional DF for its contribution of Rs. 518 crores towards construction of two metro stations at CSIA, Mumbai.

AERA has issued a Consultation Paper on 4th November, 2015 seeking stakeholders' comments on its proposal to allow levy of Rs. 15 per embarking domestic passenger and Rs. 75 per embarking international passenger towards Metro connectivity to the airport.

This information was given by Minster of State for Civil Aviation, Dr Mahesh Sharma in a written reply to a question in the Lok Sabha today. 
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Bhiwadi Airport Project 
Government of India has granted site clearance to Delhi Mumbai Industrial Corridor Development Corporation Limited (DMICDC) for setting up of a Greenfield Airport for public use near Bhiwadi, District Alwar, Rajasthan on 18.11.2015.

The timeline for construction and the budget of airport projects depends upon various factors such as land acquisition, availability of mandatory clearances, financial closure, etc. by the individual operator for which the details are submitted to Ministry of Civil Aviation during the 'in-principle' approval stage.

This information was given by Minster of State for Civil Aviation, Dr Mahesh Sharma in a written reply to a question in the Lok Sabha today. 
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On the Spot Payment of Cash for Upgrade 
Air India has introduced a scheme to upgrade passengers on the basis of spot payment of cash at airports.

The scheme is called 'Get Up Front' and is applicable for both domestic and international sectors. The upgrade at airport is subject to availability of seats and on First Come First Served Basis and also subject to the physical presence of a guest at the check-in counter. The scheme is being publicized through text cards at the airports.

The following measures have been taken to make Air India competitive with private airlines:

i. Induction of brand new aircraft on several domestic & international routes to increase passenger appeal

ii. Phasing out & grounding of old fleet

iii. On Time Performance (OTP) is being monitored at the highest level within Air India on daily basis. A video conference is anchored by Integrated Operation Control Centre (IOCC) every day in which the representatives of operating departments from four regions participate to review the previous day's operation and evolve process improvement wherever possible.

This information was given by Minster of State for Civil Aviation, Dr Mahesh Sharma in a written reply to a question in the Lok Sabha today. 
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