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Revised Policy on 5/20 and Route Dispersal Guidelines

 
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ameya
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PostPosted: Wed Jan 14, 2015 5:26 pm    Post subject: Revised Policy on 5/20 and Route Dispersal Guidelines Reply with quote

The Ministry of civil aviation has come up with revised guidelines for 5/20 and RDG. My blog post takes a look at what is changing

Revised Policy on 5/20 and Route Dispersal Guidelines

Last week the Ministry of Civil Aviation (MoCA) discussed revised policy on regional connectivity with all stakeholders and came up with a middle path to address the issue which has been awaiting reforms for a long time.

In 2012, a leading consulting firm submitted report to MoCA on revamping the existing Route Dispersal Guidelines (RDG) but these suggestions were never implemented. The government now is looking to club the famous 5/20 rule with RDG. This comes at a backdrop of airlines making full use of Regional Airline policy with Air Costa scaling up operations, Air Pegasus setting up shop soon and Air Asia India working like a regional airline operator.
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Nimish
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PostPosted: Wed Jan 14, 2015 6:45 pm    Post subject: Reply with quote

Very nice article Ameya - and seems like the Govt is finally doing something that can be called reasonable.

Based on the proposed new policy, it seems like an airline will be restricted on the length/ frequency of intl routes based on it's domestic ASKMs? How will that work for airlines like AI/ 9W who operate such long haul flights? And how long before UK or Air Asia India can start regional flying (say daily BOM/DEL-SIN + BOM/DEL-DXB) flights?
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ameya
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Location: Pune,Maharashtra

PostPosted: Wed Jan 14, 2015 7:54 pm    Post subject: Reply with quote

Nimish wrote:
Very nice article Ameya - and seems like the Govt is finally doing something that can be called reasonable.

Based on the proposed new policy, it seems like an airline will be restricted on the length/ frequency of intl routes based on it's domestic ASKMs? How will that work for airlines like AI/ 9W who operate such long haul flights? And how long before UK or Air Asia India can start regional flying (say daily BOM/DEL-SIN + BOM/DEL-DXB) flights?


Thanks. Yes, the government if finally doing something.

This length / frequency combination is a little weird to begin with, but they have done their analysis and realized that 5 aircraft - A320 180 seats would help accumulate 150 Crore ASKMS and requirement is 200 Crore.

I hope they change the proportion of ASKMs deployed and ASKMs used, because to deploy a widebody aircraft to Europe should not mean deploying 10 flights a day between IXB and GAU.

Also what is not clear is - Will DEL-EU-NA be considered for ASKM calculation or only DEL-EU leg ?
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sumantra
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PostPosted: Wed Jan 14, 2015 8:16 pm    Post subject: Reply with quote

Ameya Sir, thank you for an extremely interesting analysis of a lot I did not have a clue about. From your in-depth analysis, to a layperson as me, this looks very positive, indeed. This is positive, and yet does not seem to be terribly biased towards the aspirations of any one airline in particular: fair enough, and progressive, as well. Can you also elucidate more on the Category III part? I am also a bit surprised that you did not put this up on your newer `network thoughts' website. Thanks once again, Sumantra.
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ameya
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PostPosted: Wed Jan 14, 2015 9:04 pm    Post subject: Reply with quote

sumantra wrote:
Ameya Sir, thank you for an extremely interesting analysis of a lot I did not have a clue about. From your in-depth analysis, to a layperson as me, this looks very positive, indeed. This is positive, and yet does not seem to be terribly biased towards the aspirations of any one airline in particular: fair enough, and progressive, as well. Can you also elucidate more on the Category III part? I am also a bit surprised that you did not put this up on your newer `network thoughts' website. Thanks once again, Sumantra.


To be honest - I screwed up while putting it on network thoughts and having a very busy day hence a quick post on the blog. Will migrate it to the website over the weekend.

For Cat - 3, the restriction will go which means, whatever you ply on say DEL-IXU will not be considered for DFC

Thanks for reading !
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sumantra
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PostPosted: Wed Jan 14, 2015 9:10 pm    Post subject: Reply with quote

I really admire how you are able to do all this, in spite of an extremely punishing schedule!
Cheers, Sumantra.
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