Private airlines permitted to fly international routes

Our Economy Bureau
30 December 2004

Chennai: On December 29, 2004, the union cabinet approved the proposal of the ministry of civil aviation to allow eligible Indian 'scheduled carriers' to operate on international routes other than to Gulf countries.

The restriction on the Gulf countries is for the next three years. It also approved the ministry's proposals and course of action suggested for strengthening Air India and Indian Airlines, and for establishing the improved operational synergy between Air India and Indian Airlines.

Further, the cabinet has approved the proposal to discontinue the practice of mandating commercial agreements on all new services, to review the existing commercial agreements and phase them out over the next five years. As a result all new operations by foreign carriers, both on new destinations as well as on existing routes, will be free from the obligations of the mandated commercial agreements.

All existing government mandated commercial agreements will be reviewed and phased out over the next five years. However, the airlines will be free to enter into such cooperative marketing arrangements as are mutually agreed upon by them.

The designation of Indian scheduled carriers for operations on international routes will be subject to proven credentials of the airlines in the domestic sector. Only Indian scheduled carriers with the minimum of five years continuous operations and having minimum of 20 aircraft in their fleet will be allowed to operate on international routes.