Financial Daily from THE HINDU group of publications
Sunday, Jan 23, 2005
Financial Daily from THE HINDU group of publications Sunday, Jan 23, 2005 |
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Policy Logistics - Airlines Govt gets tough on air traffic rights — Moots 2-year ban on airlines for non-compliance Our Bureau
New Delhi , Jan. 22 THE Government has proposed a two-year ban on airlines that have failed to start services to those countries for which permission has been given. This is being done so that only serious players put in requests for operating more flights to international destinations, senior Government officials said. "Traffic rights which have been given would have to be utilised by the scheduled carriers within the schedule period for which they have been given," a senior Government official said. The latest Government move implies that if the traffic right is allocated for the summer schedule, then the airline has to start the flight during that schedule itself. Failure to use traffic rights will lead to a ban of two years on that route. Globally, the summer schedule of airlines starts from the end of March while the winter schedule comes into effect from end-October or early November. The move comes close on the heels of the Union Cabinet's nod to scheduled carriers that have operated continuously for at least five years in the domestic sector and have a minimum fleet size of 20 aircraft to fly to more international destinations. The decision paved the way for Jet Airways and Air Sahara along with Air India and Indian Airlines to start operating more international flights. However, the Gulf region will remain out of bounds for private sector airlines for another three years. The Government has mandated that all eligible schedule airlines be asked to submit their operational plans in the first and third quarter of each year. The airlines' operational plan of up to one year will be considered for the routes that have to be allocated. The allocation of traffic rights to the airlines will depend on the entitlement to a particular country. However, if the total entitlement falls short of the requirement projected by the eligible airlines, then the allocation will be in the ratio of available seat/kilometre deployed by the airline in the domestic sector over the past five years.
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