Pvt carriers seek level playing field with foreign airlines

Private Indian airlines operators today urged the government to avoid alleged discrimination against them in policy-making and provide them a level playing field with the foreign and new air carriers.
A delegation of airlines operators, under the aegis of Federation of Indian Airlines (FIA), met Union Minister of State for PMO Jitendra Singh and sought government's intervention to incorporate some of their concerns while finalising the National Civil Aviation Policy, prepared by the Ministry of Civil Aviation.
Private Indian airline operators said it was essential to avoid "discrimination" against them and provide them a level playing field with the foreign and new airlines which had started operations in India, an official spokesperson said.

The delegation included Aditya Ghosh, President of Indigo; Narayan Hariharan, Senior Vice President of Jet Airways; Ajab Singh, CMD of Spice Jet and Jeh Wadia, Managing Director of GoAir.
In a memorandum, the airline operators demanded that they should also be kept on board as stakeholders during the consultations before finalising the new policy.
They complained that while no other country in the world allows substantial ownership and effective control of its airlines to be taken over by foreign airlines, India has permitted some airlines to operate despite being effectively controlled by their foreign parent.

The memorandum claimed that the FIA represents 90 per cent of the Indian airline industry and therefore their views deserve to be heard before finalising any policy.

The operators expressed reservation over the proposed auctioning of bilateral rights on the ground that no country in the world auctions its sovereign right to others.
The memorandum also drew attention to the fact that while, for the already operating domestic airlines, the condition laid down by the Civil Aviation Ministry is to serve for at least 5 years and own at least 20 aircrafts before applying for rights to fly abroad, the new policy is said to exempt the new airlines from this obligation which will amount to injustice towards the already operating airlines.
The memorandum also referred to the proposed clause relating to the availability of seats for a healthy and balanced growth, including the backward and remotely connected areas, where these existing airlines have been operating, but the newly entering airlines may not be expected to fulfil this requirement.

As far as the sector-wise benefits, airlines already in operation from India would be at a disadvantage, because it is they who came forward to operate in sensitive areas including Jammu and Kashmir and the north-east.
An amount equal to 400 per cent of booked one-way basic
fare plus airline fuel charge, subject to maximum of Rs 20,000, will have to be paid to a flier in case airline arranges alternate flight that is scheduled to depart beyond 24 hours of the booked scheduled departure, as per the revised norms.
In case passenger does not opt for alternate flight, refund of full value of ticket and compensation equal to 400 per cent of booked one-way basic fare plus airline fuel charge, subject to maximum of Rs 20,000, will have to be paid to a flier, it said.

We have strong objection to certain issues. The operating airline would not have the obligation to pay compensation in the situations which are beyond the control of the airline including political instability and delays on the part of air traffic control, among others. How can the ATC delays be a reason for compensation and this leaves the decision in a grey area and will lead to many disputes. It is also not transparent ," Reddy questioned.
"Also, since no financial compensation shall be payable to passengers who have not provided adequate contact information at the time of making booking or when the ticket for firm travel on the selected flight is issued. This will lead to dispute settlement mechanism and which agency will be the responsible agency and in what time frame. This is especially true when it comes to transit passengers/connecting international passengers ," he said.

Besides, the burden of proof concerning the questions as to whether and when the passenger has been informed of the delay of the flight shall rest with the operating airline, Reddy said adding, " this is a grey area and leaves the burden of proof in the hands of the airline and can't be accepted.