Air travel within the country is expected to become shorter within the next two months as the government on Saturday unveiled plans to ease restrictions on use of airspace as part of the stimulus package to revive the COVID-19-hit aviation sector.
The easing of restrictions on airspace, only 60% of which is available for civil aviation, could bring benefits to the tune of Rs 1,000 crore to the aviation sector, Finance Minister Nirmala Sitharaman told reporters here unveiling the fourth tranche of the Rs 20 lakh crore financial package announced by Prime Minister Narendra Modi earlier this week.
Besides freeing of airspace, Sitharaman also announced plans to lease out six more airports to the private sector and reiterated the announcement in the Union Budget to develop India as a maintenance, repair and overhaul (MRO) hub.
Due to restrictions on airspace, civilian flights often have to take a longer route to avoid overflying defence and certain sensitive installations, which leads consumption of more aviation turbine fuel.
With the easing of restrictions, aircraft would be able to take the shortest route to a destination thus reducing the consumption of fuel and saving on time.
Sitharaman said the civil aviation ministry and the department of military affairs will take a decision on better utilisation of airspace within the next two months.
She also announced auctioning of six more airports on public-private partnership (PPP) basis and taking steps for better utilisation of Indian airspace.
For MRO, Sitharaman said India has all the capacities, manpower and soft skills required.
A competitive Indian MRO industry would help local airlines reduce expenses on such works which are currently done mostly overseas. India was one of the fastest-growing aviation markets in the world and has high growth potential.
Aircraft component repairs and airframe maintenance segment is worth around Rs 800 crore and would increase to Rs 2,000 crore in three years.
"These announcements will definitely provide positive sentiments for the overall industry," Nishant Pitti, CEO, EaseMyTrip.com said.