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Private airlines head for Canada

June 08, 2005 11:05 IST

Private Indian carriers now have one more international destination to fly to -- Canada. This is after they received permission earlier this year to fly to destinations in the US, the European Union and Southeast Asia.

The development is part of an agreement between India and Canada to increase five-fold the air traffic between them. At present, Air-India, which resumed its services to Canada in May this year, is the only airline flying to that country.

Under the agreement, the number of flights between India and Canada will go up from 28 every week -- 14 each by A-I and Air Canada -- to 140, which will be divided equally between the two carriers and can touch multiple destinations in either country.

Indian carriers will be able to fly to six cities in Canada. Designated Canadian carriers, which now touch only New Delhi, will be able to add Mumbai, Bangalore, Kolkata, Chennai and Hyderabad to their rosters.

In addition, Canadian carriers can operate to these cities through any international city except from the Gulf countries. The same will apply to Indian carriers.

Canada is a growing market for Indian carriers, with potential traffic between the two countries pegged at 200,000 passengers a year. This traffic is projected to grow by about 30 per cent each year.

"This is a growing segment. In addition, with intermediate points like the European countries also allowing unlimited access to Indian carriers, the private airlines can now launch services to Canada through these cities. Traffic in this route will grow," said a civil aviation ministry official.

Private airlines said they would take a call on starting operations on this route, once the detailed government guidelines were received.

"India-Canada is an important route. We are keen on starting service. But will take a call once the schedule of allocation of capacity becomes available," said an executive with a domestic private carrier.

As part of the strategy to liberalise the country's aviation sector, India has been entering into bilateral agreements with several countries. For example, in the last six months, India signed air services agreement with the US, the UK, Germany, Belgium, China and France.
BS Corporate Bureau in New Delhi
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