•5/20 Relaxation Effects: Airlines who are
subsidiaries of foreign companies with base outside India will use relaxation
in policy to fill fuel outside India and continue to use same aircraft for
domestic travel instead of fuelling in India as cost of ATF fuel is high in
India. Example: Air Asia with base as Malaysia and Petronas a Malaysian govt
company will benefit, Singapore airlines also will benefit and Indian airline
companies will not be profitable. This is a hidden point behind pushing of
rules by foreign airlines to get foreign routes to profit faster and we will
lose revenue from sale of fuel from public sector oil
•5/20 if relaxed will put govt in legal
battles as many companies which are struggling to get out of debt. So govt
should setup a separate committee to
review 5/20 policy alone since any govt decision will be seen as favouring some
companies like air Asia and vistaraleading to problems at parliament and
legal later. Even Air India will lose market severely if rules are relaxed so
easily for new comers without much sub clauses
•Generally
more the aircrafts the employment will be high and growth and revenue but years
don’t matters so aircrafts policy must be minimum 15 aircrafts. The below
ideas will
be simple and neutral stand to old airlines and protect public from reduced
domestic flights by operating more flights abroad in near future. At the same
time give opportunity for new ones to try to enter Indian market with more
aircrafts so that they can get to fly abroad in 3 years which is a short time
frame in airline industry for their high investment
•The year rule should be kept at minimum 2
years to check their operation by AAI, passengers, Govt and security and 2
years will promote more airline ventures to try as 2 years is small time frame
for them.
•All airlines are plying only in heavy
demand route and smaller airports don’t have direct flights or very less
flights and less growth and loss operations. So flights from these small
airports which currently there is not much traffic to foreign airports directly
& mainly without immediate transit in India before going to foreign airports should get maximum relaxation
in rules like 2/10 will promote travel and revenue to these small airports.
These airports list govt must revise every 1 year. The list should not include
any airports from which there are any international flights currently or from
immediate transit of 4 hours. If airlines really want to fly govt can give Ex:
Manali, Tirupathi. But aircraft's increased at 3 per year till 5/20
•Or 3 years/35 or 3 years/40 & aircraft's count should be kept high above current limit of 20 so that domestic
traffic is not affected on the verge of foreign trips by these aircraft's to
fill fuel at low cost or the count of aircraft's at least close to what existing
airlines have without affecting their operations. If 3/30 or 3/35 not viable
for them they can wait till 5/20 rule.
•Or 4yrs/30 or 4yrs/25 aircraft's so that
new entrants can feel they have less years to go to target and old airlines
feel that they got some benefit. If new airlines cant meet then they can wait
till 5/20 rule.
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