Tuesday, October 23, 2018

Big blow to international expansion plans of new airlines

New Delhi: In what could be a big blow to new airlines planning international operations expansion, the government has planned to keep the bilateral flying rights with countries such as Dubai, Singapore and Qatar unchanged. 

It may be noted that bilateral flying rights can only be increased if Indian carriers make use of at least 80 per cent of the entitlement on those routes, added the report. While all the three countries had asked for a limit increase considering the heavy air traffic from India, the government plans to keep the bilateral rights unchanged. 
In simple terms, existing airlines which currently operate have used up their rights fully in case of Dubai, almost 90 per cent in Qatar and well on its way to breach the 80% mark in case of Singapore. 

Considering that a lot of foreign airlines fly a lot of Indians from Dubai to Europe, Africa and the Americas, it is one of the key connecting destinations and is a key route for Indian airlines. While some Indian airlines are aggressively expanding online, the real problem will be dealt with by newer airlines which will not be able to get rights for flights to Dubai, Singapore and Qatar. 

However, a senior aviation ministry official told ET that there will be no agreement for increasing foreign flying rights with the aforementioned countries. He added that there is little or no evidence that merits an increase is foreign flying rights marginally. 
23/10/18 TimesNowNews.com

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