ASEAN SKIES OPEN UP, JET, SAHARA
ON RUNWAY
The Prime Minister's Office (PMO) has cleared the proposal
to let domestic private airlines like Jet Airways and Air
Sahara fly to Asean destinations such as Singapore, Bangkok
and Kuala Lumpur.
Not
only will this be music to the ears of Jet and Sahara, but
it's also good news for the air traveller, who will have more
airlines to chose from, as capacity on these routes will rise
significantly. Additionally, competition on these routes could
also bring in better fares.
This,
however, may not be good news to national carriers like Indian
Airlines, as they may face a cut in their earnings on these
routes, given the perception of better service from private
airlines. According to official sources, the PMO's nod to
the proposal came last week. The civil aviation ministry had
sought the PMO's ratification on the issue, as the proposal
was cleared by the NDA government, but was not implemented.
With
the clearance in hand, the civil aviation ministry will soon
come out with the necessary guidelines, while the private
airlines will have to apply to the DGCA for clearance. Private
airlines have been expecting this move for a while and have
already put in their applications with the civil aviation
ministry, sources said.
Both
Jet and Sahara want to fly to Singapore, Bangkok and Kuala
Lumpur to begin with.
According to industry sources, both Jet and Sahara are already
in the market, scouting for wide body planes.
While
Sahara plans to acquire up to three aircraft a year for the
next few years, Jet is in talks with both Boeing and Airbus
for additions to its fleet.
As
of now, the domestic private airlines already fly to Saarc
destinations like Colombo and Kathmandu. Dhaka will soon be
added to their route map. Besides, they are also preparing
themselves for the opening up of the international skies.
Once that happens, even Indian Airlines will put its hat in
the ring to fly to destinations like London, Frankfurt and
New York. But a decision to open up the international routes
for private airlines is expected only by the year end.
The
NDA government was all set to clear the proposal, but a few
members of the Cabinet, including Arun Shourie, had objected
to the proposal, citing security concerns, which led to the
proposal being grounded.
