Thursday, August 16, 2007

Policy for regional airlines

The recently announced aviation policy for regional airlines is a repackaging of what was already available along with several new riders. In fact, the targeted policy perhaps makes regional play less attractive than what was possible under a general aviation licence.
The scramble to launch regional airlines has more to do with acquiring the difficult to get aviation licence, even a restricted one, than any improvement in the prospects of regional carriers. The policy creates a separate category of permit for regional airlines — scheduled operator permit for regional airlines.
These regional airlines would operate primarily between the airports of the selected region. The policy seeks to promote a hub-and-spoke model. The regional airlines would aggregate traffic from smaller centres to a metro airport.
This is a working blueprint in other countries that can be easily adapted in India with a bit of policy support. India has huge unmet demand for travel between non-metro cities that is best serviced through regional carriers.
16/08/07 Economic Times
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