From the ECONOMIC TIMES http://economictimes.indiatimes.com/articlelist/13354027.cms
The main highlights of these new policies set forth by the Indian Govt are :
1. The government is planning to let scheduled domestic carriers like Jet Airways and Air Sahara operate on all existing unused international routes, except the Gulf sector.
2. The government is also planning to announce a limited open sky policy for the next three years. Under the scheme, it has decided to open up the skies for all carriers, including Gulfbased airlines, to operate any number of flights to India during the peak months of December, January and February every year for the next three years.
3. While the skies are being opened up, preventive measures are also being put in place. For instance, the foreign skies would be opened up for only those carriers who have operated on the domestic routes for two years (so DECCAN AIR suffers here). This rider will prevent any international carrier from setting up base in India and immediately starting overseas flights.
4. It will also prevent a new domestic operator from immediately seeking international routes. The domestic operators would be given unused rights of Indian Airlines and Air-India and the distribution would be done on the basis of their flying record for the past five years. Given the current scenario, only Jet and Sahara will benefit from these new norms.
5. In the new policy, the government has decided to exclude foreign airlines from picking up equity in domestic airlines. The Naresh Chandra committee had recommended that foreign airlines be allowed to take up to 49 per cent stakes. But the proposal has been put on hold since the ministry wants more comments from other parts of the government on the issue. **WHICH MEANS FORGET IT
6. Foreign airlines would also get a bag of goodies if the civil aviation ministry’s recommendations are accepted. Airlines from any country can now operate aircraft with 300 seats to India, provided they have bilateral landing rights. The earlier restriction on the maximum number of seats — which varied from country to country — that can be deployed has been dispensed with. In case of American carriers, aircraft with even 400 seats would be allowed.
7. The other major benefit to foreign airlines is the liberal grant of sixth freedom rights which enables carriers to take passengers from India to third countries. As a result of this liberalisation, the need for commercial agreements with Air-India and Indian Airlines will not be necessary for obtaining this facility. Together, the two national carriers earn Rs 330 crore per annum through commercial agreements and this revenue would be in jeopardy. The civil aviation ministry’s proposal is to phase out such arrangements over a period of three years and not insist on them in new bilateral pacts.