Pvt airlines may fly to Persian Gulf, S-E Asia

Jet Airways and Air Sahara may soon be allowed to fly to the Persian Gulf and Southeast Asia.

The Cabinet is likely to take up this week the issue of granting more foreign routes to private airlines.

According to official sources, the Cabinet is also likely to discuss an easier "bilateral" policy for international airlines.

According to official estimates, Air-India and Indian Airlines carry only 30 per cent of the international traffic to and from India, and 65-70 per cent of the international rights remain unused. Around 262 frequencies are unused in the Asia-Pacific, Persian Gulf and Europe sectors.

Jet and Sahara have for long been seeking rights to fly to the Persian Gulf, Southeast Asia and London. The Naresh Chandra Committee on aviation, too, has recommended giving them these rights.

The argument is that international rights allow the loss-ridden airlines to improve their bottom lines and could lead to lower domestic fares.

The government in October allowed private airlines to fly to Sri Lanka, and followed it up with a decision to let them to fly to South Asia.

Though the Cabinet has approved both moves, the aviation ministry is taking time to allocate rights, according to industry sources.

The other issue the aviation ministry is grappling with is Indian Airline's estimate that a 10 per cent shift in international traffic will result in a Rs 540 crore drop in revenue of the two government-owned airlines. Air-India and Indian Airline together earn Rs 5,400 crore from their international flights.

Spreading wings

• The Cabinet is likely to take up this week the issue of granting more foreign routes to private airlines
• Air-India and Indian Airlines carry only 30 per cent of the international traffic to and from India, and 65-70 per cent of the international rights remain unused
• Around 262 frequencies are unused in the Asia-Pacific, Persian Gulf and Europe sectors