Mumbai/New Delhi: The civil aviation ministry is proposing a freeze on capacity enhancement by private carriers on international routes, a proposal aimed at navigating national carrier Air India out of turbulence. The ministry is finalising Air India's seat projections for the next five years and will allocate flying rights to private carriers only after the state-run carrier's requirements are met.
The government grants flying rights on international routes to private carriers on the basis of bilaterals , or air service agreements with various countries. The ministry's insistence on protecting Air India's interests is hurting domestic private carriers , some of whom have already lost airport slots allotted to them at destinations such as Dubai and Singapore.
"It is not that these slots are lost forever but they will now have to be re-negotiated and Indian carriers might not get a good deal," said a senior industry insider who did not wish to be named. Five Indian carriers , including Air India operates international flights. The ministry's decision has disrupted the winter schedule of Jet Airways, IndiGo and SpiceJet that were hoping to start new flights by the end of this month. Domestic carriers have a combined market share of 36%.
According to an estimate by the Centre for Asia Pacific Aviation (CAPA), private carriers have asked for 60,000-75 ,000 seats per week from the government while international carriers have sought 2 lakh seats per week.
14/10/11 Manisha Singhal & Anindya Upadhyay/Economic Times
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