Mumbai/New Delhi: The government is set to play a big role in purchase of aircraft by private airlines and may push them into increasing flights to smaller cities under a controversial set of rules that is set to rile the industry.
The civil aviation minister, Ajit Singh, is pushing for a more aggressive stance towards private airlines who buy a large number of aircraft and deploy them on a few routes creating overcapacity. He wants them to tailor those purchases and increase flights to non-metro cities and small towns as part of the government's drive to extend and deepen connectivity.
But the rules are likely to fall afoul of airlines who want complete freedom in purchases and deployment. The industry has not taken kindly to the ministry's desire to increase flights to smaller airports, saying that such flights will be uneconomical.
Experts say that the government could end up micro-managing the sector and revive memories of a bygone era when government decided the location and quantum of business investment.
02/10/12 Manisha Singhal & Anindya Upadhyay/Times of India
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The civil aviation minister, Ajit Singh, is pushing for a more aggressive stance towards private airlines who buy a large number of aircraft and deploy them on a few routes creating overcapacity. He wants them to tailor those purchases and increase flights to non-metro cities and small towns as part of the government's drive to extend and deepen connectivity.
But the rules are likely to fall afoul of airlines who want complete freedom in purchases and deployment. The industry has not taken kindly to the ministry's desire to increase flights to smaller airports, saying that such flights will be uneconomical.
Experts say that the government could end up micro-managing the sector and revive memories of a bygone era when government decided the location and quantum of business investment.
02/10/12 Manisha Singhal & Anindya Upadhyay/Times of India
