Aviation Ministry to revamp aviation policy; permit international carriers to fly from India

The aviation Ministry is planning to allow more foreign carriers in the upcoming policy to meet the increasing demand for the international travel that domestic airlines are unable to service. As of now, India has done bilateral air service agreement with 97 nations. However, around half of them are not used as the routes are unprofitable. This move of the government is expected to improve international connectivity and it is also expected to offer competitive rates to consumers. 

The Aviation Ministry is planning to work on its policy on air traffic growth projections, the number of nations that remained unconnected and ways to connect them with domestic and foreign carriers. According to an Aviation Ministry official “Why should passengers suffer if domestic carriers can't provide adequate connectivity? They should be given more choice. We have to align transportation with national needs,” he added that the work on the new policy would start after October.  

Aviation sector experts have opinion that the present sector does not make for an open system, because nations get flying rights depending on sovereignty of air space and negotiations. Moreover, government owned Air India gets first preference to fly on new foreign routes. The private airlines get go-ahead only after Air India is consulted. Along with this, the private players must have five years of domestic operations before they can apply for international flights.

The restoration of existing policy will not only increase the international traffic but it also expected to improve the connectivity. However, for revamp of current policy, ministry has to discuss it with other ministries such as external affairs, commerce and tourism along with the other stakeholders of the aviation sector. The ministry official said “there were no set guidelines on how to capitalize on international aviation.”

However, experts have view that, allowing international carriers is unexpected to hit domestic carriers. The increase in competition in the sector would help to check prices and will make domestic carriers competitive and improve their services. Other sectors such Auto, Insurance and Telecom has set the example that, increased competition has benefited domestic consumers. However, entry of foreign carriers would have adverse impact on Air India. 

According to experts India needs to be connected with Eastern Europe and African nations in the wake of rise in tourism and business. Further, the five year waiting period for private carriers has been criticized. Former civil aviation ministry joint secretary Sanat Kaul said, 'Young South East Asian airlines take away a lot of international traffic from our country, while our airlines (like IndiGo or SpiceJet) are made to wait for five years. It is an unfair practice and needs a relook.' The ministry official also accepted that the pre-condition on domestic carriers had adversely affect growth on international sector. On the other hand, this rule is not imposed on foreign carriers and is hence distortionary.