Saturday, June 24, 2017

SpiceJet and IndiGo disagree about India's RCS exclusivity

As India prepares to offer a second round of routes on its regional connectivity scheme UDAN (Ude Desh Ka Aam Naagrik, or "let every citizen fly"), IndiGo Airlines (6E, Delhi Int'l) has come out against a three-year exclusivity clause contained in the contracts. The Financial Chronicle quotes an official source as saying that IndiGo believes the clause could lead to monopolies on certain routes, and would like to see it limited to one year or abolished altogether. However SpiceJet (SG, Delhi Int'l) is in favour of the clause.

The UDAN scheme was officially launched earlier this year, with the aim of increasing air travel from India's Tier II and III cities. In March, 128 routes were awarded to five operators – Alliance Air (India) (9I, Mumbai Int'l), Air Deccan (DN, Bangalore Int'l), Air Odisha (Bhubaneswar), TruJet (TRJ, Hyderabad Int'l) and Spicejet. Spicejet has elected not to receive government subsidies in the form of viability gap funding, and IndiGo did not participate in the first round.

Despite not having any UDAN routes currently, IndiGo recently placed an order for fifty ATR72-600 aircraft in anticipation of participating in the next round.
23/06/17 ch-aviation