Panel to study opening of Gulf to pvt airlines

Mumbai: The government is taking the first steps towards opening of the Gulf region to private airlines — by setting a high-level committee under the aegis of the aviation ministry — to examine the contentious issue.
At present, the Gulf region is reserved for national carriers Air-India and Indian Airlines for a period of three years which expires in 2008. If government allows private carriers to fly to this region, Jet Airways and Air Sahara — which have been lobbying for opening it up — would be the main beneficiaries.
Union Civil Aviation Minister Praful Patel told Business Standard: “We have not taken any decision as of now. The proposed high level committee will take a decision on this regard.”
Sources said the aviation policy which would be out by February would have a specific mention on opening up of the Gulf sector.
However, allowing private carriers will adversely affect national carriers. “Air-India accounts for one-third of capacity deployed in Gulf sector. The income for Gulf sector constitutes 33 per cent of Air-India’s total income. Gulf sector revenues constitutes 25 per cent of the Indian Airlines’ revenue,” industry analysts pointed out.
26/12/06 P R Sanjai/Business Standard

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