Pvt airlines could fly foreign skies

The exclusion of the Gulf sector, sources said, is not planned to be a permanent affair. The Ministry’s argument is that opening it up right away could affect Air India’s finances and, to some extent, even that of Indian Airlines which is just about emerging from its losses.

Official sources, however, pointed out that once Air India strengthens its fleet and revamps its Gulf operations by launching Air India Express, its proposed low-cost carrier, the Government could reconsider allowing private carriers to also operate to this sector.

The ministry, sources said, has been keeping the private carriers in mind while negotiating air bilaterals. For instance, the number of air bilaterals with UK were increased from 19 to 38 even though Air India had not exhausted the earlier entitlement. It’s learnt that the Ministry has also decided to phase out commercial agreements mandated in many of the air bilateral agreements where foreign airlines have to extend certain facilities to Air India.

This clause was usually included in bilateral agreements with countries like the Central Asian republics to which Air India saw no business interest in operating flights.

The NDA Govt had also suggested phasing out of such commericial agreements over the next three years. While it is uncertain whether such a timeframe will be specified this time, sources said, the phasing out of these agreements will also be sent for Cabinet approval.

Incidentally, the government has not been including the clause for commercial agreement in any of the fresh air bilateral arrangements it has entered into since last December.

Private domestic carriers like Jet and Sahara have been lobbying hard to get the government to let them utilise the several unutilised air bilateral rights. Just about half of some 97 air bilaterals are being utilised today and many destinations like Rome, Cairo and Athens are no longer served by A-I.

In anticipation of a clearance, private airlines have already been in touch with international carriers for tie-ups. Sources indicated that discussions are on to finalise the norms to designate a private carrier for international operations. This becomes important, particularly, after the emrgence of Air Deccan as a major competitor.