Saturday, August 30, 2014

Now, airlines' frequency to under-served regions linked to international flying rights

New Delhi: The government is likely to link an airlines' frequency of service in under-served regions like Kashmir and the Northeast to the international flying rights it is allocated.
Such a move is expected to not only incentivise airlines' operations in under-served regions, which are considered loss-making but also help streamline allocation of international flying rights.
"In the event of any liberalised scheme permitting international routes for domestic airlines, (the) government could consider imposing proportionate obligatory operations to remote and regional areas for such airlines, which would be notified separately," says a draft route dispersal guideline, which has been put up on the civil aviation ministry's website for public comments.
A civil aviation ministry official said such a move could act as catalyst and airlines may add capacity in underserved regions to get allocations in key international routes, which is going to be difficult with more airlines coming into operation. An industry executive said such a step will not only increase connectivity to under-developed regions but also bring in a formula to decide on international allocations for Indian carriers.
30/08/14 Mihir Mishra/Economic Times
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