The report of the Comptroller and Auditor General (CAG) tabled in Parliament last month assailed the government for giving away foreign flying rights to carriers other than Air India, and recommended freezing or rolling them back to provide “a more than level playing field” to the national carrier.
The fact however, is that the Ministry of Civil Aviation has steadfastly refused to negotiate any new or additional flying rights with other countries in the last three years. The government has been sitting on requests by private domestic airlines for additional seats on overseas routes, in the process allowing foreign carriers to ramp up their market share. This, despite the fact that Air India has been unable to utilise its foreign flying rights for want of aircraft, said a top AI official.
The ministry says it will consider the domestic carriers’ proposals “soon”. “We have been allowing airlines to fly on routes where they had sought permission. All the pending proposals will be processed soon,” Civil Aviation Minister Vayalar Ravi told The Indian Express.
As per the ministry’s own estimates, private airlines have asked for 50,000 international seats in 2011, over 40 per cent of which are for destinations in the Middle East. According to a latest survey by an industry body, up to 75 per cent of flying rights on profitable routes like those to Middle East hubs remain unutilised.
“I have an aircraft which is grounded, but I want to utilise it. However, the permission has not come through,” said a top Jet Airways executive. Jet has asked for permission to tap new destinations in Europe, besides Dubai and Muscat.
A senior SpiceJet executive said the airline’s request to fly to 10 international destinations including Dubai, Muscat, Riyadh, Singapore, Bangkok, Kuala Lumpur, Tashkent and Tehran, has been pending with the ministry for over four months.
“We are adding a couple of Boeings to our fleet every month. We intend to deploy these aircraft on those routes,” said the SpiceJet executive. After getting a go-ahead from the government, airlines have to obtain clearances from foreign authorities, which typically take another 3-4 months.
IndiGo, the number 3 player in the domestic market, too has sought permission for medium-haul international destinations.
On the most profitable route for Indian carriers — Dubai — nearly 44 per cent of flying rights remain unutilised. Foreign carriers have 48 per cent of the market share, and are closing the gap with Indian carriers, which have 52 per cent.
In the European sector, Indian airlines use less than 10 per cent of the allowed capacity, leaving up to 95 per cent of the market share to foreign carriers. Air India, Jet and Kingfisher fly to France and Germany; no one flies to Spain, Denmark, Norway, Sweden or Switzerland.
In the ASEAN, Far East and Asia Pacific market, foreign carriers have 55 per cent of the share.
Source : Indian Express
The fact however, is that the Ministry of Civil Aviation has steadfastly refused to negotiate any new or additional flying rights with other countries in the last three years. The government has been sitting on requests by private domestic airlines for additional seats on overseas routes, in the process allowing foreign carriers to ramp up their market share. This, despite the fact that Air India has been unable to utilise its foreign flying rights for want of aircraft, said a top AI official.
The ministry says it will consider the domestic carriers’ proposals “soon”. “We have been allowing airlines to fly on routes where they had sought permission. All the pending proposals will be processed soon,” Civil Aviation Minister Vayalar Ravi told The Indian Express.
As per the ministry’s own estimates, private airlines have asked for 50,000 international seats in 2011, over 40 per cent of which are for destinations in the Middle East. According to a latest survey by an industry body, up to 75 per cent of flying rights on profitable routes like those to Middle East hubs remain unutilised.
“I have an aircraft which is grounded, but I want to utilise it. However, the permission has not come through,” said a top Jet Airways executive. Jet has asked for permission to tap new destinations in Europe, besides Dubai and Muscat.
A senior SpiceJet executive said the airline’s request to fly to 10 international destinations including Dubai, Muscat, Riyadh, Singapore, Bangkok, Kuala Lumpur, Tashkent and Tehran, has been pending with the ministry for over four months.
“We are adding a couple of Boeings to our fleet every month. We intend to deploy these aircraft on those routes,” said the SpiceJet executive. After getting a go-ahead from the government, airlines have to obtain clearances from foreign authorities, which typically take another 3-4 months.
IndiGo, the number 3 player in the domestic market, too has sought permission for medium-haul international destinations.
On the most profitable route for Indian carriers — Dubai — nearly 44 per cent of flying rights remain unutilised. Foreign carriers have 48 per cent of the market share, and are closing the gap with Indian carriers, which have 52 per cent.
In the European sector, Indian airlines use less than 10 per cent of the allowed capacity, leaving up to 95 per cent of the market share to foreign carriers. Air India, Jet and Kingfisher fly to France and Germany; no one flies to Spain, Denmark, Norway, Sweden or Switzerland.
In the ASEAN, Far East and Asia Pacific market, foreign carriers have 55 per cent of the share.
Source : Indian Express
