Monday, September 29, 2014

Will regional connectivity be mandatory for new airlines?

Vistara, Tata-SIA joint venture, was originally scheduled to start its operations during the festive season. It may not be able to do so, as it still has to secure several technical approvals. If the experience is any criterion, it generally takes about eight months to obtain an Air Operating Permit (AOP). Pending approvals include flight operation manuals and other related procedures. Now, why these procedures should take as many as eight months (or about 240 days) to accomplish is a tough question to answer, and it is best left to the Civil Aviation Ministry to clarify as to whether this time frame can be brought down, at least for future applicants.

In fact, Vistara had proposed to start its operations with two aircrafts and complete its fleet of 20 by the end of 2015.

In the meantime, the Civil Aviation Ministry finds that only 75 of the 125 airports are being actually used. It plans to make “regional connectivity" obligatory for new airlines, so that these do not become, "non-performing-assets!” This was stated by the Civil Aviation Minister Ashok Gajapathi Raju, while speaking to journalists, on the sidelines of the 65th AGM of the Aeronautical Society of India (AeSI), Hyderabad Chapter recently.

Perhaps, the minister hopes that by making this mandatory, these under (or practically unused) utilised airports bring about some activity!
30/09/14 AK Ramadas/moneylife.com 
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