Click to play videoNew Delhi: Domestic airlines may get some help in getting more passengers and business.
Sources in the Civil Aviation Ministry have told CNN-IBN that it is in favour of scrapping a clause which says an airline must have operated in the domestic market before it can go global.
If the proposal is accepted by a Group of Ministers, it will now allow airlines like Kingfisher, Spice Jet, Indigo and Go Air to operate flights abroad. This move will put these airlines, now operating at a loss, on the fast track road to profit as they can fuel at the international rate, which is 35 per cent lower than the domestic rate offered.
They can also divert aircraft sitting idle due to saturation in some domestic sectors on the international route. Also there are many international low cost carriers which are coming to india and flying out Indian passengers. This new move will allow Indian carriers to keep the outbound Indian passenger.
The domestic airline industry is divided rather predictably on this issue, on the basis of age. While older private airlines like Jet Airways are in favour of continuing with the existing norms, newer entrants like Kingfisher, Spice Jet and Air Deccan want them to be relaxed. Only Air India, Indian and Jet Airways currently meet the minimum eligibility criteria to operate international flights.
Some international low cost carriers, like the UAE's Etihad, which are coming to India and flying out Indian passengers. This new move will allow Indian airlines to keep outbound Indian passengers.
(For updates you can share with your friends, follow IBNLive on Facebook, Twitter and Google+)
displayed with permission. Use of the CNN name and/or logo on or as part of CNN-IBN does not derogate from the intellectual property rights of Cable News Network in respect of them.