Private airports pitch for open skies policy to boost air traffic

Private Airport Operators wants the government to liberalise air traffic rights in order to encourage growth. The demand for opening up of Indian skies is amongst several recommendations made by the group to civil aviation minister A Gajpati Raju.

APAO members include airports in Mumbai, Delhi, Bangalore, Hyderabad and Kochi.

"To encourage passenger/cargo traffic liberal bilaterals should be encouraged with no restrictions, similar to the USA policy,'' APAO has written in a letter to the minister. India has an open skies agreement with the US which allows unlimited frequencies between two countries.

In 2013 Delhi and Mumbai airports had objected to the government granting additional 37,000 weekly seats to Abu Dhabi as it would divert the traffic from tier II and III cities into Gulf. Then two busiest airports had argued that this will impact their plans to develop hubs and APAO's recommendation now is in contrast with stand taken earlier. Air India too has been opposing liberal grant of traffic rights to foreign airlines.

"Our demand has to be seen in an perspective. We have also suggested steps to strengthen Indian airlines. Unless we strengthen them airlines will not be able to compete globally. We have asked for strengthening of Indian airlines and airports. We have asked for abolition of 5/20 rule which restricts domestic airlines to have five years of operation and twenty planes to launch international service in our letter to the minister. We have also asked for rationalisation of taxes on aviation fuel and maintenance repair and overhaul organisations,'' said an executive from APAO. He added that APAO has also demanded that Mumbai and Delhi should be developed as aviation hubs.

APAO's other demands include easing of land use restrictions at Mumbai and Delhi airport, setting up of an Aviation Finance Corporation to provide low cost loans for airport construction, fast tracking of airport privatisation programme, action plan for clearing of Air India's dues to airports amongst others. Other suggestions include extending income tax concession to brownfield airports such as Mumbai and Delhi, allowing the use of passenger service fee for security related capital expenditure.