The Civil Aviation Ministry is opening up access to global routes for domestic private airlines, as part of its initiatives to help the sector stem financial bleeding.
Other initiates under way include allowing airlines to directly import Aviation Turbine Fuel (ATF) and opening up FDI in the domestic sector. “Increasing international traffic rights can help private carriers eliminate some of their financial problems, as international routes are more profitable,” Mr Ajit Singh, the Minister for Civil Aviation, told mediapersons at the India Aviation 2012 today.
He said this year about 500 to 600 new international flights will be opened up to private carriers, with new destinations such as Uzbekistan, Egypt, Ethiopia and Vietnam.
On ATF, Mr Singh said while fuel constituted 20 to 25 per cent of the cost of operation of airlines in the US, in India it was more than 40 per cent. He, however, said it will take some more time for Indian carriers to directly import ATF, as oil companies need to scale up the infrastructure required.
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