Jet, Kingfisher set to gain from decision on more overseas rights

New Delhi: In a move that would increase international flights from India, the civil aviation ministry last week decided to partially lift a freeze on granting overseas flying rights, two ministry officials close to the development said.
Jet Airways (India) Ltd and Kingfisher Airlines Ltd—the country’s largest and only private carriers allowed to fly international—are set to benefit from the decision, though rights to lucrative sectors such as London and Hong Kong may remain out of bounds.
The ministry grants international routes based on negotiations between the two governments involved.
Air India, run by state-owned National Aviation Co. of India Ltd, had earlier in 2009 sought a freeze on granting new routes to both Indian and foreign airlines, claiming the excess capacity in the market hurt its interests.
In the last four years, the aviation ministry had granted as many as 400,000 seats to carriers flying into and out of India, of which foreign airlines command a 64% share. The number of passengers flying to and from India rose to nearly 26 million in 2008, from 20 million some two years earlier.
02/11/09 Tarun Shukla/Live Mint

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Categories: Foreign Nov 2009, Jet Airways Nov 2009, Kingfisher Nov 2009