Thursday, December 21, 2017

Trading of ASKMs between airlines divides FIA, as SpiceJet favours norm

New Delhi: The issue of allowing trading of Available Seat Kilometres (ASKMs) amongst incumbent airlines to fulfil Route Dispersal Guidelines (RDG) responsibilities has divided the Federation of Indian Airlines (FIA).

The division first came to fore during a meeting held in the aviation ministry last week, where SpiceJetBSE -2.43 % supported in favour of allowing trading of ASKMs between airlines. The FIA opposed the move on the grounds that this benefits only one airline, which is notoperating flights low-density CAT II routes and buying it from other carriers.

This would be the first time that FIA has been divided on an issue. FIA, in recent times, have together opposed entry of new airlines in India and abolition of five years and 20 aircraft norm, foreign flying eligibility norm for Indian carriers.
On December 11, 2017, the ministry had called a meeting to decide on the issue of allowing trade of ASKMs between airlines. The need for formulation of this rule arose because the National Civil Aviation Policy did not allow any such trade between airlines, which was earlier allowed.
21/12/17 Mihir Mishra/Economic Times