Domestic airlines asked to cut capacity, align flights

New Delhi: The civil aviation ministry has asked domestic air carriers flying to foreign destinations not to compete with each other and align schedules of their flights for better returns. Early this week, ministry officials asked air-carriers to get rid of excess capacity on both foreign and domestic sectors and also reduce transit time to save on operational costs.
The suggestion was necessary as domestic airlines such as Air India, Jet Airways and Kingfisher are set to lose over Rs 8,000 crore due to stiff competition and rising jet fuel in 2008-09, a ministry official, who was present in the meeting, said.
Air India, Jet Airways and Kingfisher have already started rationalising routes and reduced capacity, he said requesting anonymity. The meeting, called to discuss ways to enhance operational efficiencies, was attended by executives of domestic airlines, airport operators and aviation regulator.
Currently, aviation sector is largely deregulated that allows airlines to compete with each other thus benefiting consumers. They offer lower airfares and better choices to consumers for getting business.
It is suggested that flights of two airlines reaching to a destination almost at the same time, should not compete to operate a connecting flight from there to a third destination if there is not adequate traffic. The two can rationalise the routes in such a way that everybody will be the winner, he said.
Loss-laden airlines are expected to identify possible synergy regarding routes and capacity by October this year so that the idea could be implemented in the next summer schedule, a person familiar with the development said.
11/04/09 Economic Times

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Categories: Indian Aviation- In General Apr 2009