Tuesday, September 23, 2014

Airlines resist pressure to fly to small-town India

New Delhi: Varanasi’s flying public, hoping to catch a direct Jet Airways flight to Mumbai, perhaps via a code-share with Invision Air, or Freedom Airways, will have to wait just that much longer.
While the aviation ministry had come up with a proposal last month to mandate a sharp hike in the proportion of capacity mandatorily available in small towns — the policy was to be implemented using small air taxi operators like Invision Air (see graphic) — the scheduled operators like Jet, SpiceJet and the yet-to-start Vistara have said they find the proposal onerous. The airlines are to meet aviation minister Ashok Gajapathi Raju on this on Tuesday.
The carriers have pointed out that the proposed rules, which mandate that airlines fly as much on regional and remote routes as they do on the 30 trunk routes by end-2016, will result in a significant increase in costs while not throwing up adequate revenues.
23/09/14 Financial Express
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