India plans to allow more foreign carriers under an upcoming policy to keep pace with rising demand for international travel that domestic airlines are unable to service. 

India has bilateral air service agreements with 97 nations, but about half of them are not being utilised because the routes are unprofitable. Opening the domestic aviation sector to more foreign operators would not only improve international connectivity but also give consumers competitive rates as per a report by Anindya Upadhyay in ET.

The ministry now plans to work on its policy based on air traffic growth projections, the number of nations that remain unconnected and ways to service them with both foreign and domestic carriers. "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," a senior aviation ministry official said, adding that the work on the new policy would start after October. 

Experts say the current policy does not make for an open system, as countries get flying rights depending on sovereignty of air space and negotiations. Also, state-owned carrier Air India is given first preference to fly on new foreign routes. Private airlines get permission only after AI is consulted. Besides, private airlines must have five years of domestic operations before they can apply for international flights. 

A revamp of the existing policy, which would involve consultations between the ministries of external affairs, commerce and tourism, apart from other stakeholders, will not only increase connectivity but also augment international traffic from India. The ministry official said there were no set guidelines on how to capitalise on international aviation.