Wednesday, October 10, 2007

Govt not to relax 5-yr rule for airlines flying abroad

Mumbai: The oral proposal to reduce the number of years of domestic flying from five to three years for airlines to qualify for international operations has been given a quiet burial. An alternative is, however, being found for Kingfisher Airlines, which is determined and ready to fly overseas from April 2008.
Top aviation ministry sources said owing to an aggressive lobbying by industry players, stiff opposition to alter the rules had developed and several members of Parliament had raised the issue at the highest levels.
Last month, a letter by Communist Party of India (CPI) General Secretary A B Bardhan to the prime minister argued that since airlines are "carriers of our flag and prestige", only those with sufficient experience (that is, five years) should be allowed to go overseas.
Others opposing the move contend that the present annual capacity deployed between India and the rest of the world is 39 million seats in both directions and most airlines operating into and out of India have an average seat factor of around 70 per cent, leaving ample room for any foreseeable traffic growth. It has also been argued that adding new carriers from India will worsen the already-congested skies and airports.
10/10/07 Anjuli Bhargava/Business Standard
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