 "Aviation ministry bats for consumers")
Last week, domestic carriers increased their cancellation charge to Rs 1,500 from the earlier Rs 1,000. Civil Aviation Secretary K N Shrivastava said, "We asked them (airlines) to moderate it....Reduce it and have a graded system. The airlines have agreed to consider it and said they will come up with a formula soon."
Further, the ministry has decided to have an ombudsman for the Delhi and Mumbai airports, "to begin with," said Shrivastava. "Then, depending on experience, we will have them in major centres."
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The decisions were taken at a meeting attended, among others, by senior officials of the ministry and the directorate-general of civil aviation. Also present were IndiGo chief executive Aditya Ghosh, Air India director Nasir Ali and seniors from Jet Airways and SpiceJet.
The ministry also decided to amend the Aircraft Act and Rules to safeguard the interests of aircraft leasing companies. These companies have raised lease rentals and are specifying stringent conditions for Indian airlines, in the wake of difficulties faced by lessors in re-possessing aircraft from now-grounded Kingfisher Airlines. Shrivastava said global leasing companies were now "wary" of doing business in India.
"To ensure the government's commitment to abide by the Cape Town Convention, we have decided to incorporate changes in the Aircraft Act and Rules (1934) to satisfy the lessors," he said. The said Convention is a global treaty to standardise transactions involving movable property such as aircraft and their engines, railway equipment and space assets.
The Airports Authority of India had taken over several aircraft, including leased ones, to recover dues from Kingfisher. Banks and other lenders had contemplated similar moves and there were several court cases, with the leasing companies (which actually owned these planes) not able to get these back.
At the meeting, the government also suggested domestic carriers increase their operations, particularly to states which have slashed taxes on jet fuel. The recommendation had also been made at a meeting earlier this week, at which state governments wanted airlines to enhance operations in return for their considering a cut in value added tax on aviation turbine fuel.
The airlines have agreed to consider the proposal. To begin with, airlines have agreed to launch more operations from non-metro airports, as in Bagdogra-Kolkata, Agartala-Kolkata, Coimbatore-Mumbai and Coimbatore- Delhi. Some of these would be launched in the next 30-60 days or during the coming Winter Schedule.
With an eye on notifying shortly a policy to enhance regional air connectivity policy, the ministry asked airlines to augment their fleet of smaller aircraft and to determine airports they wished to fly to. "We asked the airlines to start their homework on how to go ahead. The steps would include acquiring small aircraft and deciding on the preferred destinations (Tier-II and III destinations). They expressed keenness in this regard," informed Shrivastava.
On connectivity to remote places such as the Andaman & Nicobar Islands, Lakshadweep and Leh, the ministry has suggested airlines put in place a differential fare structure for local residents and tourists. "A distinction needs to be made between tourists and locals who want to travel to the mainland for routine work," said the secretary.