Tuesday, August 27, 2013

Post liberalisation, private carriers scramble to take off…

The genesis of the position that the civil aviation sector enjoys in India today can be traced back to 1990-91 when private airlines made a re-entry in Indian skies.
The aviation sector was deregulated by the Government that, however, only took hesitant steps at this stage. To begin with private airlines were only given permission to operate charter and non-scheduled services under what was called the ‘Air Taxi Scheme.’
East West emerged the first national level private player to operate in the country after over five decades (the Tatas were the first to operate in October 1932 when they started mail services on the Karachi-Ahmedabad, Bombay, Bellary, Madras route).
However, it was only in 1994 that the Government repealed the Air Corporations Act that paved the way for the entry of private carriers in operating scheduled services in Indian skies. Airlines such as Jet Airways, Air Sahara, ModiLuft, Damania Airways and East West were given permission to start scheduled operations (incidentally some of these were already operating as air taxis).
27/08/13 Ashwini Phadnis/Business Line
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