Posts: 4544
Joined: Sat Aug 02, 2003 4:56 am

Indian Govt Allows Pvt Airlines To Fly Abroad

Wed Oct 22, 2003 2:55 am

From : The Economic Times of India

In a major development in the aviation sector, the government on Tuesday allowed private domestic carriers to operate abroad, starting with destinations in Sri Lanka, under an agreement reached between Prime Minister Atal Bihari Vajpayee and his Sri Lankan counterpart Ranil Wickremesinghe.

"With a view to increasing tourist flow and connectivity, it was decided to encourage private scheduled airlines of India, who operate only in domestic sector at present, to extend their operations to airports in Sri Lanka," an External Affairs spokesman said.

**This is great moves and a very wise move on the part of the Indian Govt...guess now we will be seeing lots of B 737NGs of JET and SAHARA in CMB. Both airlines will now give UL and IC stiff competition on the India-Lanka route especially if they are allowed to fly from multiple Indian cities (BOM-DEL-CCU-MAA-BLR-HYD-KOCHI-TRIV). I hope MALE is next on the list!!!
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Joined: Sat Dec 04, 1999 4:41 am

RE: Indian Govt Allows Pvt Airlines To Fly Abroad

Wed Oct 22, 2003 3:44 am

May be Jet and Sahara will place orders for B777s and A340s if govt. allows them to fly to US. It will be good to see them here...
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Joined: Wed Aug 06, 2003 12:54 am

RE: Indian Govt Allows Pvt Airlines To Fly Abroad

Wed Oct 22, 2003 5:08 am

This is great news. Jet and Sahara have proven that they are worthy airlines to fly overseas. I wonder what the impact will be in the long term for IA and AI. Recently, the Bangladesh Government also gave GMG, a private carrier, to rights to fly to India. This is good for the subcontinent.
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Joined: Sat Aug 02, 2003 4:56 am

RE: Indian Govt Allows Pvt Airlines To Fly Abroad

Wed Oct 22, 2003 6:06 am

Ok the new rules are :

1. Unlimited flights from the same 18 destinations in India to Sri Lanka as given to ASEAN flights.

2. However SRI LANKAN can only operate daily from BOM-DEL-CCU-BLR-HYD and MAA from CMB.

From The Hindu below

The move comes almost a decade after the Indian Government opened the Indian skies for private sector airlines in 1993. In effect, the announcement means that three scheduled private sector airlines — Jet Airways, Air Sahara and Deccan Air — will be now able to apply to the Government for designated status to fly to airports in Sri Lanka.

India also offered to Sri Lanka the facility of operation of daily air services by its designated airlines between Colombo and Delhi, Mumbai, Chennai, Hyderabad, Bangalore, and Kolkata. The Sri Lankan national carrier, Srilankan, operates 45 flights a week connecting eight Indian cities. However, the airline offers a daily service only to Chennai and Thiruvananthapuram. In effect, Srilankan airlines will now be at liberty to enhance its operations to daily flights to Mumbai, Bangalore, Hyderabad, Delhi and Kolkata.

In comparison, Indian Airlines operates seven flights a week from Chennai with its own aircraft. In addition, the airline operates 11 code-share flights a week from different destinations in the country to Colombo.

Moreover, unlimited access will be available for air services to and from 18 tourist destinations in India. Interestingly, the Prime Minister, Mr Atal Bihari Vajpayee, announced similar concessions for the designated airlines of the 10-member Association of South East Asian Nations (ASEAN) countries earlier this month, which also would like to operate to the 18 tourist destinations.

As for the pact with Sri Lanka, it has also been agreed to do away with the existing requirements of commercial agreements between the designated airlines of the two countries.

Official sources said that the announcement would come into effect from the date that it is formally notified. However, private airlines are unlikely to start operating to Sri Lanka immediately. A senior official of Air Sahara had earlier told Business Line that it would take the domestic scheduled private airlines about three months from the date the announcement is made to start operating abroad.

**I now expect Sri Lankan to lease many more (at least 3-4) Airbus A 320s and one more A 330-200 or A 340!!!
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Joined: Thu Jul 24, 2003 4:10 am

RE: Indian Govt Allows Pvt Airlines To Fly Abroad

Wed Oct 22, 2003 6:15 am

Is this the beginning of the end on the hold of Indian carriers in Gulf region? Srilankan is pulling lot of Indian traffic to Gulf with excellent connections in Colombo. So now I won't be surprised if Jet or Sahara get into agreement with Srilankan or Emirates to carry passengers forward to middleeast from Colombo.

I was very surprised when they launched Bangalore flights. But flights are packed on every flight! Some of my folks in Abudabhi flew Srilankan to Bangalore via Colombo - reason being Srilankan threw two days free stay and a tour! Anyway Srilanka is playing its card right and has got more and more concession even in other trading areas. The Free Trade Agreement has proved beneficial to both countries.

Anyway pretty bold steps in aviation from Indian govt during last few weeks - looks like someone at the top has made up his mind to get rid of protectionalism of state carriers. If only they give more autonomy to Air India and Indian Airlines to buy more planes and rationalize their routes...sigh.

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Joined: Tue Oct 10, 2000 10:31 am

RE: Indian Govt Allows Pvt Airlines To Fly Abroad

Wed Oct 22, 2003 7:53 am

This is great news for SriLankan and also for the public in Sri Lanka. SriLankan has been wanting to extend flights to India for some a while now, but with the clearance given and some new aircraft on its way (2 A340-200s, freeing up a few A330s and A320s), maybe this will become a reality soon.

Vice versa, SriLankan has also invited private airlines to operate from Sri Lanka abroad. So we might also see 1 or two Sri Lankan airlines plying the trade to India. My bet is on Jet to take advantage of this opportunity first up. If I am not mistaken, they have a large presence in Chennai?
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Joined: Sat Aug 02, 2003 4:56 am

RE: Indian Govt Allows Pvt Airlines To Fly Abroad

Wed Oct 22, 2003 10:31 am

If JET and SAH want to compete effectively on the India-CMB route then I advise them to link up with a large hotel chain and tour guide company in CMB so that they can too like UL provide all inclusive tickets with tour packages + hotel accomodation at a reasonable rate in Sri Lanka.

IC doesnt do that only UL does so they can take away a lot of ICs pax to CMB from all over India.

Each airline (JET & SAH) should serve CMB at least 3 times a week from every Indian city it has spotted to fly from i.e. BOM-CMB or DEL-CMB 3 times a week. Also from BOM-DEL-CCU especially a larger capacity B 738 should be used and not 737-700.

I hope that they can next be allowed to fly to MALE-MALDIVES from India as IC has v v v few flights to the island whilst UL has 2-3 daily flights on big A 330s and A 340s and they take a majority of the Indian passengers there!!!
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Joined: Fri Jul 07, 2000 3:14 pm

RE: Indian Govt Allows Pvt Airlines To Fly Abroad

Wed Oct 22, 2003 3:01 pm

This is yet another example of the Vajpayee govts playing to the gallery without fully understanding the cost & benefits of the move.

While I have always called for an Open Skies-2 and allowing pvt airlines to fly abroad, that must happen under the framework of the Civil Aviation Policy. The new CAP has not yet been cleared and we could have well waited for that to come out. Pvt airlines could have been allowed to fly abroad under that policy! I mean what was the bloody hurry except that our incompetent PM wanted to score some brownie points?

Allowing pvt airlines to fly aborad is one thing, but that would be a death blow to the state owned carriers IC and AI. If there is to be an open skies it should be for all carriers including AI and IC. Right now AI and IC have to fly to stations taht 9W and S2 dont feel the need to. AI and IC need govt approval for fleet renewal (and we all know where that has placed them!). All these aspects make the state owned carriers elss competettive.

But what else can you expect from a Govt which is driven more by the interests of sundry banias than national interest?


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