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'Open sky' policy to hit A-I, IA earnings

October 10, 2003 15:37 IST

The announcement of 'open sky' policy for designated airlines of ten ASEAN nations to fly unhindered into the Indian cities is likely to hit the earnings of Air-India and Indian Airlines, official sources said in New Delhi on Friday.

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However, in order to prevent any adverse impact on the revenue of Air-India earned through bilateral air traffic rights, the government has allowed the airlines of these Southeast Asian nations to operate freely to certain places like Goa, Kochi, Amritsar, Gaya and Khajuraho, the sources said.

These foreign carriers would however not be allowed to use the 'open sky' policy for metro cities, the sources said.

They replied in the affirmative when asked whether these airlines would be allowed to take the benefit of the policy when it is announced by the government for all other carriers as has been the past practice during the peak winter season.

While only three ASEAN nations operated their flights to India, both Air-India and Indian Airlines would face heightened competition if these carriers were allowed to operate to the comparatively smaller but important tourist destinations, industry sources said.

Air-India earns revenue through the bilaterals if it does not operate to the countries with which the agreements have been signed by the government. The designated carriers of these nations have to enter into a commercial arrangement with Air-India for carrying out their India operations.

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Number of User Comments: 3

Sub: Title and subject - any connection???/

It is shocking to see a ridiculous content to an interesting title "rat enters Air India flight"....but the content speaks of open sky policy..why is ...

Posted by Vishal

Sub: Don't cry like a baby!!!

The Govt of India should remove all protection to the national carriers because of their dismal performaces in the past. The consumers should not be ...

Posted by Ankur

Sub: Open sky policy to hit AI/IA

This is good news for indian tourism industry,thease majar tourist attraction r going to connect directly frm S-E...but bad news for specly for AI....

Posted by Sanjay Prajapati


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