New private airlines could go international sooner

20 Jun 2008

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New Delhi: New domestic airlines could get a leg up in terms of international traffic, according to reports which suggest that the ministry of civil aviation is thinking about doing away with a clause that necessitates and airline to have stipulated domestic operations before it can fly abroad.

According to a report by CNN-IBN that quoted unnamed sources in the civil aviation ministry, the ministry is in favour of removing the restrictive clause that makes airlines operate in the domestic market before commencing international operations.

The proposal needs to be accepted by a group of ministers, and if it goes though, could possibly get established private airlines such as Kingfisher, Spice Jet, Indigo and Go Air to fly abroad. The report indicates that this domestic operations clause will most likely be replaced by certain technical criteria, such as the type and number of aircraft required for international flights, staffing levels of pilots with the correct amount of flying experience, and certain other personnel and compliance norms. Apparently, the government has only three months to clear the proposal with the Empowered Group of Ministers, and any delays would effectively derail the process as the election processes start coming alive.

Presently, only flag carrier Air India and Jet Airways meet the minimum eligibility criteria to operate international flights, having had domestic operations for the required stipulated period. Air Deccan would qualify in August, and that was one of the main reasons in its take over by Vijay Mallya's Kingfisher, as now that it is owned by Kingfisher, and once the merger is complete, its licence to fly abroad would effectively be applicable to Kingfisher as well.

What is significant is that most of these airlines are presently operating at a loss, and flying international will allow them to fuel up at international rates, which are 35 per cent lower than the rates of aviation turbine fuel in India. The move will also utilise idle domestic capacity onto the international routes, ensuring better capacity utilisation. It will also open up some competition to international low cost carriers, who presently enjoy an enviable position flying out Indian passengers rather exclusively.

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