India has approved new aviation policies aimed at increasing connections between regions and improved cargo shipping—and one result may be more competition and lower fares for tourists as well as domestic travelers.
Under one part of the plan, airfares between cities and small towns will be capped at about $37, with the government subsidizing losses up to 80% with the aim of making “flying affordable, safe and convenient and to promote balanced regional growth, tourism, infrastructure and ease of doing business,” according to the Civil Aviation minister.
Other changes will allow more Indian airlines to fly international routes and to codeshare with other airlines. The government expects these measures will help India become the world’s third-largest aviation market within 6 years. That would mean a growth in domestic passengers from the current 70 million to about 300 million in 2022.
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Given how slow road and train travel are in India, the population is ready for a more efficient way to get around. When I visited a few months ago, I observed new airports being built at a frantic pace. I think India will hit its air travel goals.