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Lack of financial power hampering airlines from going global

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Press Trust of India New Delhi
Lack of adequate resources and financial strength is the primary reason for the Indian airlines for not having large scale international operations, government said today.

Significantly, Civil Aviation Minister Ashok Gajapathi Raju on several occasions in the past advised the Indian carriers to properly utilise the already existing bilateral agreements with various countries.

Currently, India has signed air services agreement or bilateral air traffic rights with as many as 104 countries.

The ASA allows designated airlines of the two countries to operate commercial flights in each other's territory.

"The primary reason for low utilisation of traffic rights by Indian carriers includes lack of adequate resources and financial strength of Indian carriers," Minister of State for Civil Aviation Jayant Sinha said in a written reply to the Rajya Sabha.
 

In reply to another question, Sinha said that in December 2015, Federation of Indian Airlines (FIA) had drawn the attention of the government towards the non-availability of viable slots for Indian carriers at Dubai International Airport.

"However, as on date Indian carriers are utilising almost entitlements on India-Dubai sector," Sinha said.

As of now, the carriers of India and Dubai are allowed to operate 62,500 seats per week as per the air services agreement between the two sides.

Sinha, in reply to another question, said that ASA provides a legal framework for operations and any airline which, inter alia provides provision for traffic rights, point of call, designation of airlines, among others, where as slot is a right granted by an airport owner which allows an airline to schedule a landing or departure during a specific Time period.

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First Published: Jul 26 2016 | 6:42 PM IST

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