New policy on cards to boost foreign flights

Stung by what it calls an ‘unfair charge’ of favouring foreign airlines, the ministry of civil aviation is working on a comprehensive aviation policy that would attempt to increase international traffic from India.

The ministry would examine India’s air traffic growth projections, the number of countries which remain unserviced by domestic carriers and how to increase connectivity to these countries for both foreign and domestic carriers.

A senior civil aviation ministry official said former Reserve Bank of India deputy governor Rakesh Mohan is drafting a mega transport policy, where civil aviation will figure prominently.

“We need to allow foreign airlines to service passenger demand to new countries from India, instead of constantly thinking of protecting domestic airlines. If domestic carriers are unable to cope with demand to new destinations, why not allow foreign carriers more traffic rights?”

The ministry has been under fire for favouring foreign airlines by granting more bilateral flying rights on profitable routes in the last few years instead of protecting interests of Air India.

Being the national airline, Air India has first right of refusal whenever a bilateral agreement is being signed with a foreign country. The carrier has been alleging favouritism and as recently as last month made sure low-cost carrier IndiGo’s rights to Muscat were curtailed (after being okayed earlier) because Air India wanted to now suddenly increase flights to this destination.
The official said following the accusation of favouring foreign airlines, the government has been refusing to even consider requests from many countries on increasing existing rights - and granting more seats per week only to non-contentious routes in SAARC countries.
“No enhancements have been given for countries like Germany, Singapore, Dubai, Malaysia etc in the last two-three years. Entitlements have been increased for countries such as Nepal (30,000 against 4,000 seats per week earlier) and Sri Lanka (one lakh against 35-40,000 seats peer week)”.
“We need to focus on where we need to open up, where our economic interests lie. India currently flies direct to only 47 of the 190 countries in the world. A lopsided five-year domestic operation cap has anyway hampered the growth of domestic airlines on international routes.”
This official said that inter ministry consultations would be held with ministries of external affairs, commerce and tourism.
The issue of framing a comprehensive aviation policy has surfaced now since even two decades after launching an ‘open skies’ policies, we don’t have guidelines on how to cash in on the increasing traffic opportunities across the world.
Apart from international traffic, the policy is also expected to look into ways to improve the financial viability of domestic airlines.