Jet Airways and other local carriers may soon get the rights to add flights to overseas destinations, applications for which have been pending with the government for the past one year, allowing the money-losing airlines to serve the more lucrative routes, civil aviation minister Ajit Singh said.
While Jet Airways may be able to expand its services in Europe and other medium-haul destinations, low-cost carriers SpiceJet Ltd and IndiGo, run by InterGlobe Aviation Pvt. Ltd, will be able to expand into West and South-East Asia as per a report in Mint by Tarun Shukla.
Most airlines have not been granted international rights for the past one year after the government auditor questioned the logic behind liberally granting bilateral rights to international carriers which hurt flag carrier Air India.
“We are reviewing the applications. There will be due consideration given to Air India’s plans. If there is any conflict it will be referred to a committee otherwise applications will be cleared soon,” Singh said in a phone interview, confirming that “it’s safe to say that” rights would be given within a month.
Jet and Kingfisher Airlines were the only private carriers that could fly on overseas routes till 2009. Airlines such as IndiGo and SpiceJet were not eligible to fly on international routes as they didn’t meet the criterion of flying for at least five years on domestic routes.
Singh said he is also seeking a review meeting of Air India where the operational plans of the flag carrier will be discussed.
IndiGo, which has 49 aircraft, plans to add 18 aircraft to its fleet in 2012. IndiGo also has to return seven aircraft this year as their leases are ending.
IndiGo has flights to Muscat, Kathmandu, Dubai, Singapore and Bangkok from Delhi and Mumbai. These flights started late last year.
It wants to expand services on these routes as well as fly from southern India to destinations in South-East and West Asia.
SpiceJet has sought to increase its services to countries that constituted the former Soviet Union. Jet has sought rights to fly to Paris, a route already serviced by Air India.
Indian carriers have a 35% share of the international traffic in and out of India compared with foreign carriers’ 65%.
While the grant of international rights would help Indian carriers compete with international carriers, the move appears to be hurried, according to an analyst.
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