 "Assocham wants infra spend be increased to 10% of GDP")
The new aviation policy is a turning point for India's civil aviation sector as it frees the operators from the shackles of 5/20 rule for flying overseas.
The step would surely attract more investment in the aviation which in any case had become quite viable after a sharp correction in the fuel prices, said D S Rawat, Secretary General of the Associated Chambers of Commerce of India (Assocham).
The capping of the air fare would propel the regional connectivity and would provide an affordable alternate to the first class railway tickets which are not available on demand.
However, capping of the fares should ensure that the operators are not made to suffer losses on the short haul routes. The economics of the concept should be properly worked out, added Rawat.
The decision comes along with other key initiatives taken by the Union Cabinet which include merger of the State Bank of India associates with the parent bank and the steps to accommodate the promoters of the companies under heavy debt, said Assocham Secretary General.
