Saturday, March 31, 2007

Jet, Sahara may get to fly Gulf routes next year

New Delhi: In a move that would enable carriers like Jet Airways and Air Sahara to operate flights to the lucrative Gulf sector, the government is planning to open up this market to private airlines early next year. The Gulf route, which has been reserved for state-owned Air India and Indian till now, is likely to see private competition in January 2008. The move is significant for Jet Airways, which is said to be keen on starting operations to the Gulf countries.
During a review of the civil aviation policy draft last year, the civil aviation ministry has proposed extension of the public sector monopoly over Gulf routes till 2010 - giving Indian and Air India two more years to benefit from restricted competition in this sector. However, officials of the ministry have now proposed, in the latest draft of the policy which was recently reviewed by civil aviation minister Praful Patel, that private carriers should be allowed to operate Gulf flights from next year.
The change in the government stand on giving private players the leeway follows the merger of Indian and Air India, which is currently under way. It is felt that the merged entity - with its large fleet and huge network - would be in a position to take on the competition.
31/03/07 Sunny Verma/Economic Times
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