Monday, July 28, 2014

Can India accommodate more domestic airlines?

New Delhi: The old debate on whether India has an appetite for more domestic airlines has again got a lease of life after GM Siddeshwara, the Minister of State for Civil Aviation, told the Lok Sabha that during the last three-four years, six companies applied for scheduled and regional scheduled operator permits.

Of these, four – AirAsia (India), Quickjet Cargo Airlines, Ligare Aviation and LEPL Projects (Air Costa) — have been given air operator permits after they completed the process for starting new airlines.

AirAsia (India) and Air Costa have already started operations.

Technically speaking, getting an air operator’s permit is the second and final step in starting an airline in India. A new start-up airline first has to approach the Ministry of Civil Aviation and seek a no-objection certificate (NOC). At this stage, the Ministry seeks clearances from various Government agencies, including the Home Ministry, which checks the background of individuals that the airline wants to induct on its board. With the Ministry’s NoC, the airline approaches the Directorate General of Civil Aviation for clearances to fly. These clearances are given after the regulator examines all the manuals of the airline and conducts route proving flights, after which the airline can take to the skies. However, just completing all the formalities is a long drawn-up process.
27/07/14 Ashwini Phadnis/Business Line
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