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Sat, Jan 01, 2005

India Allows Private Airlines To Go International

Controversial move defines new rules, sets aside Gulf routes for three years

The government of India has cleared the way for private airlines to fly international routes to any locations except the Gulf. Previously, only Air-India and Indian Airlines were allowed to fly these routes. For the next three years, they will retain the monopoly only on profitable routes to UAE, Qatar, Oman, Bahrain, Kuwait and Saudi Arabia. Private airlines were allowed to fly domestically, as well as to Nepal and Sri Lanka.

The only airlines allowed to begin international operations are those that have five years of domestic experience and have a fleet of 20 or more aircraft. At this time, only two airlines qualify under these rules -- Jet Airways and Air Sahara.

"Since all airlines operating to foreign destinations will be Indian flag carriers, they should have a minimum flying experience. These private carriers have established themselves well and together have almost 60 per cent of the domestic market," said civil aviation minister Praful Patel to Asian Age.

The announcement of the decision has upset some sectors of the Indian aviation industry, particularly those parties who were planning to start their own airlines in the coming year. "A level playing field has not been provided to all the airlines," said Dr. Vijay Mallya, chairman of Kingfisher Airlines. "The Centre has taken this decision on the basis of the recommendation made by the Naresh Chandra Committee. This committee should revalidate its report taking into consideration the sudden explosion and growth of the Indian aviation industry."

The announcement will become the law of the land upon official notification, and airlines that qualify under the guidelines are free to begin planning their summer schedules based on the new rules. The new rules also mandate that the airlines who open international routes must continue to fly domestic routes.

FMI: http://civilaviation.nic.in

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