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Curbs on private airlines' global flight

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Our Corporate Bureau New Delhi
Last Updated : Feb 06 2013 | 7:52 AM IST
To prevent under-utilisation of international traffic entitlements by private domestic carriers, the government will impose a two-year ban on airlines failing to utilise the entire capacity. This will also dissuade non-serious players from acquiring rights.
 
It has been stipulated that rights for a particular season should be utilised in the given period. If a carrier fails to use its entire entitlement during a season, it will not be allowed to operate on that particular route for two years.
 
Besides, the government reserves the right to deny allocation of traffic rights to a particular airline depending on its preparedness, notwithstanding the guidelines.
 
According to the guidelines, to fly abroad the carrier should have been in operation for five years, have a fleet of 20 aircraft, have a valid air operators' permit, get a security clearance from the home ministry and be approved by the Aircraft Acquisition Committee.
 
Due consideration will be given to Indian Airlines and Air-India before allocating routes to private domestic carriers. All eligible carriers will have to submit their operation plans in the first and third quarter every year. But, allocation will depend on availability of traffic rights in that particular route.
 
If the total entitlement falls short of the requirements projected by the carriers, entitlements will be in the ratio of available seats per kilometer deployed by a particular airline in the domestic sector over the last five years.
 
The move comes close on the heels of the Union Cabinet''s nod to allow domestic private scheduled carriers to fly to more international destinations, excluding the Gulf region. The decision paved the way for Jet Airways and Air Sahara to start more international flights.

 
 

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First Published: Jan 26 2005 | 12:00 AM IST

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