Monday, December 28, 2015

NRIs beware: Flying could get dearer

Air travel might be expensive for millions of non-resident Indians (NRIs) from next year as the Government of India plans a major shift in its aviation policy by putting restrictions on landing rights and seats to foreign airlines.
According to media reports, New Delhi plans to change the way it allocates capacity to foreign airlines from a state-negotiated method to an auction process to protect domestic carriers from overseas competition. Bilateral rights allow airlines of two countries to operate a fixed number of seats to a limited number of destinations in each other’s territory.
“Foreign carriers that have already exhausted their seat capacity will need to buy additional capacity through an auction,” Bloomberg has reported by quoting an official. Money earned by auctioning the seats will go into subsidising rural flights in India, the official was quoted as saying.

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