The Hindu Business Line : Panel to review route guidelines for airlines

IN a move that could accelerate the southward movement of domestic airfares, the Government has set up a committee headed by the Director General of Civil Aviation (DGCA) to review the route dispersal guidelines (RDG).

The RDG makes it mandatory for scheduled airlines to operate a certain number of flights in a particular region.

The committee, which is to give its recommendations within two months, will include members not only from Indian Airlines but also private airlines, apart from having senior Government representatives.

The decision to constitute the committee was cleared by the Government in the last few days, senior Government officials said.

The committee is likely to look at the RDG in both the short and long-term basis.

The RDG is basically based on cross-subsidisation in that the category II and III routes, which are considered loss-making, are subsidised by flights operated between the metros and some other key cities.

In the short term, the committee may look at both shifting and adding some of the airports or cities from one category to another to provide relief to the domestic airlines.

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