International flying rights to Indian carriers: Privatized Air India loses preferential status – Times of India

New Delhi: Privatization Air India Under India’s bilateral agreements with other countries, getting international flight rights will no longer take priority and all Indian carriers will now be on the same footing.
The Directorate General of Civil Aviation (DGCA) has modified the guidelines in this regard and removed the clause that was there for the erstwhile state-owned company. King: “The operational plans submitted by Air India will be given due consideration before allotment of traffic rights to other eligible applicants.”
The regulator on April 19, 2022 issued revised rules to allow scheduled international flights to Indian carriers who may qualify to do so after meeting the 0/20 requirement – no limit on years of operation , but there should be a minimum of 20 aircraft. in the fleet.
Tata acquired AI and AI Express three months ago. Alliance Air, which has a full turboprop fleet, is going to be privatized soon.
Given the poor financial condition of most Indian carriers, underutilization of the flight rights granted to them has been a common occurrence over the years.
When airlines want to add flights, they will approach the ministry to do so, first consent will be taken from AI if it plans to operate on that particular route.
“This would have delayed the entire process and compounded the problem at the expense of less-users of flight rights by airlines who could have done so,” said people with knowledge.
Demand for international flight rights to rise soon: ByeAir India and AI Express are expected to connect international routes.
IndiGo had major international expansion plans from mid-2024.
billionaire investor Rakesh JhunjhunwalaUpcoming Akasa expects to have a fleet of 20 aircraft by next year and will then seek international flight rights. So the move comes just before the expected increase in demand.
In this situation, the only requirement is that airlines must operate the flight rights they want and flights should not sit on them without being deployed.
“The traffic rights allotted to an airline for a particular schedule period shall be fully exercised by it during the same schedule period. Failure to do so would result in the unutilized rights being returned to the Aviation Ministry at the end of the time frame for which they were allotted and the Ministry would be free to allot them to other airlines. The defaulting airline may apply afresh if it so desires, but its priority for allotment of rights will be considered as the lowest among all applicants,” the guidelines say.
If airlines apply for routes that go beyond the services permitted by bilateral or air service agreements (ASAs) between India and the destination country, flights connecting smaller cities directly to foreign destinations will be preferred. “If the available traffic rights are not sufficient to meet the requirements reflected in the applications, the allocation will first be made to meet the requirement contained in any application for operation from a non-metro airport…”