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Ministry may life the freeze on bilateral expansion

 
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avbuff
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Joined: 22 Dec 2006
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PostPosted: Tue Nov 03, 2009 12:08 am    Post subject: Ministry may life the freeze on bilateral expansion Reply with quote

Even though it is said that the lift is to allow 9W, IT to open more routes, I still smell a lot of EK and Flydubai mess here and their onslaught coming in for the next few years.

http://www.livemint.com/2009/11/02225437/Jet-Kingfisher-set-to-gain-
fr.html

New Delhi: In a move that would increase international flights from India, the civil aviation ministry last week decided to partially lift a freeze on granting overseas flying rights, two ministry officials close to the development said.

Jet Airways (India) Ltd and Kingfisher Airlines Ltd—the country’s largest and only private carriers allowed to fly international—are set to benefit from the decision, though rights to lucrative sectors such as London and Hong Kong may remain out of bounds.

The ministry grants international routes based on negotiations between the two governments involved.

Air India, run by state-owned National Aviation Co. of India Ltd, had earlier in 2009 sought a freeze on granting new routes to both Indian and foreign airlines, claiming the excess capacity in the market hurt its interests.

In the last four years, the aviation ministry had granted as many as 400,000 seats to carriers flying into and out of India, of which foreign airlines command a 64% share. The number of passengers flying to and from India rose to nearly 26 million in 2008, from 20 million some two years earlier.

Air India’s share of this market had declined from 27% in fiscal 2007 to 23.55% in fiscal 2009, the carrier’s estimates show. Jet Airways claimed an 11.27% share in fiscal 2009 and Kingfisher Airlines 1.66%, according to data from the Centre for Asia Pacific Aviation.

“They should be allowed to fly. There are so many off-beat destinations they can go to. We are not going to stop them,” one of the ministry officials mentioned earlier said. The aviation ministry has started granting rights depending on the sector, he added.

Jet Airways in October won the rights to fly the four-hour route between New Delhi and Tehran, Iran, he said. So far, only Iranian carriers Mahan Air and IranAir have been flying directly to India.

Jet has also been granted rights to fly from Mumbai to Nepal’s capital Kathmandu in addition to its daily New Delhi-Kathmandu flights. Kingfisher, too, has won new rights to fly from both New Delhi and Mumbai to Kathmandu.

A Jet spokeswoman said the airline was “constantly evaluating new routes and destinations” and would make an announcement after the plans are firmed up.

A Kingfisher official, who asked not be named, said the airline would launch the flights to Kathmandu in a month.

Kingfisher also wants to start flights this winter to Dubai and Bangkok from New Delhi and Mumbai. It has also sought to fly New Delhi-London and New Delhi-Hong Kong.

None of these requests has been cleared yet, said the second ministry official, who also didn’t want to be named. He added that airlines would be allowed new flights based on two parameters—under-served routes; and routes in which Air India would have ample seats available even after private carriers are granted rights on those sectors.

Among foreign carriers, only Qatar Airways has been awarded additional rights in recent months to fly non-stop between Doha and Amritsar and to Goa. The airline started services to these two Indian cities in October.
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airbus340
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PostPosted: Tue Nov 03, 2009 12:40 am    Post subject: Reply with quote

Looks like Mr Mallay's ambbitious DEL - LHR plans are heading no where .

According to the report the 2 criteria for allowing access to start a new flight is if the route is under served which the above route is clearly NOT and the second one being if Air India will be hurt if IT added flights and that is true .
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vikramv2
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PostPosted: Tue Nov 03, 2009 10:12 am    Post subject: Reply with quote

Is there enough traffic between DEL-THR for sutaining a 9W flight. Wasnt Iran air doing bi-weekly flights on 747 combis??
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Spiderguy252
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PostPosted: Tue Nov 03, 2009 10:56 am    Post subject: Reply with quote

It's only a matter of time before foreign carriers other than QR are allowed to expand further into India, and that's where flyDubai comes in...... Sad
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me111993
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PostPosted: Tue Nov 03, 2009 11:31 am    Post subject: Reply with quote

Acc to me the two A332's which were leased to oman air and are now scheduled to be returned will take over flights to RUH/JDH, then the 2 737's free will be used for BOM-KTM and DEL-THR. The 2 A332's now relieved from the BOM-BRU-EWR will be used for BOM-NBO and perhaps another new route...
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Nimish
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PostPosted: Tue Nov 03, 2009 11:57 am    Post subject: Reply with quote

The only thing the MoCA should do right now is to completely open up all overseas rights for all domestic carriers (irrespective of age, size etc.).

Then set transparent rules/ criteria to screen applications for the rights - including a guarantee on ability to execute and sustain the route. If 6E decides it wants to fly DEL-DXB or MAA-JHB, and there are unutilized Indian rights, then let them!
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jasepl
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PostPosted: Tue Nov 03, 2009 12:30 pm    Post subject: Reply with quote

airbus340 wrote:
Looks like Mr Mallay's ambbitious DEL - LHR plans are heading no where .

According to the report the 2 criteria for allowing access to start a new flight is if the route is under served which the above route is clearly NOT and the second one being if Air India will be hurt if IT added flights and that is true .


Well, there’s at least one route that’s right up Mallya’s alley. It’s totally underserved and there’d be no competition to Air India either.

Now if only he can get Albert to construct that 380-capable airport, Mallya’s Bangalore-Monte Carlo is good as golden.
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