|
How it benefits |
Flying solo |
- Routes are considered economically unviable
- Occupancy on these routes is less than 50%, against the minimum 65% required to operate profitably
- A new scheme, based on incentives for flying non-metro routes, is in the works
|
- The average earning per passenger mile will rise
- Private airlines can deploy more aircraft on busier, profitable sectors
- Incentives like lower parking and airport charges may result in a cut in air fares
|
- It is not clear if Indian Airlines will be able to avail of this relaxation
- It will have to serve these routes to meet its social responsibility
as a PSU |
| |
| As per existing norms, if a domestic carrier does not operate on certain non-metro routes, its licence can be cancelled.
|
| |
| Domestic aviation companies are losing heavily because they have to fly non-metro routes. The occupancy rate on these flights is much below 50 per cent, while the rate should be above 65 per cent for the service to be profitable.
|
| |
| Official say the government is likely to replace this with a new regime based on incentives for operating on non-metro routes.
|
| |
| The directorate-general of civil aviation divides the routes into four categories based on traffic and business potential. Category I covers 12 sectors like Mumbai-Delhi, Kolkata-Mumbai, Delhi-Bangalore and Kolkata-Chennai.
|
| |
| Category II covers routes connecting the Northeast, Jammu and Kashmir, the Andaman and Nicobar Islands and Lakshadweep with cities in Category I. Category II A covers towns in the North East, Jammu and Kashmir, the Andaman and Nicobar Islands and Lakshadweep. And Category III covers any city pair that does not fall in categories I, II and IIA.
|
| |
| As per the present norms, domestic carriers are required to deploy 10 per cent of capacity on Category I routes or Category II routes.
|
| |
| Similarly, on Category IIA route, the airlines need to deploy 10 per cent of capacity on Category II routes. Besides, on Category III routes, which mainly comprise smaller cities, the airlines are to deploy 50 per cent of their capacity on Category I routes. |
| |
