Financial Daily from THE HINDU group of publications Wednesday, Nov 24, 2004 |
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Airlines Logistics - Airlines Private airlines' Gulf flights not for now Ashwini Phadnis
New Delhi , Nov. 23 PRIVATE sector domestic airlines will have to wait a while longer to take off for the Gulf region, although they will be allowed to operate to other international destinations earlier. Official sources told Business Line that an official note was being prepared for consideration of the Cabinet to allow private airlines to operate to all parts of the globe except the Gulf in the first few years of opening up of the Indian skies. Sources indicated that the official note is to seek a clear mandate from the Union Cabinet for opening of international routes and also specify the time frame after which private airlines will be allowed to fly to the Gulf region. The thinking behind seeking a blanket approval is to ensure that the highest decision-making body does not have to review the same decision several times. The Minister for Civil Aviation, Mr Praful Patel, refused to speak on the issue and merely said that the Cabinet note was likely to be ready shortly. Currently, the two private sector airlines - Jet Airways and Air Sahara - operate from India to Sri Lanka and Nepal. The Government also intends to give the first right of refusal for flying on international routes to Air India (AI). The opening of more routes to private sector airlines does not mean that Indian Airlines (IA) will be allowed to languish. Officials indicated that IA too, would be allowed to operate on more international routes, although the number of international routes which are likely to be given to it are likely to be less than what is given to AI. Sources indicated that the Government would consider the existing international routes being operated by the two state-owned airlines and their growth projections over the next few years before deciding on allowing private airlines on more international routes.
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