Civil aviation ministry will ease the rules which debar airlines with less than five years of service and twenty planes to launch overseas flights. The move will benefit Wadia-group promoted low cost carrier GoAir and proposed airlines such as Air Kerala.
Speaking to media persons on sidelines of an industry event in New Delhi today civil aviation minister Ajit Singh said the government will relax the minimum requirements for Indian carriers to fly overseas. Current rules allow only airlines which are minimum five years old and with 20 planes to fly abroad.
Indian carriers have been lobbying for an amendment as foreign airlines operating to India do not face any such restrictions. Foreign airlines control about 65% of all international traffic from India and in recent years several start up airlines from Gulf have launched flights to multiple locations in India.
A ministry source the government was still to formulate revised rules and the proposal was being examined. An amendment will enable GoAir to start foreign service. GoAir formed in 2005 has 13 airbus A320 planes and is the only Indian airline which is restricted from launching international services.because of the rule. Kerala chief minister Oomen Chandy too has written to Prime Minister Manmohan Singh to waive the rule for state government backed Air Kerala which will link the state with Gulf.
GoAir is amongst the contenders for securing foreign airline partner is keen to expand on overseas routes. The airline is hundred% owned by Wadia group, Last month the airline's chief executive officer Giorgio DeRoni told media persons “The Government has stipulated domestic carriers can go abroad only if they have at least 20 aircraft. Currently, we have 13, and another seven would be delivered by July 2014. We have applied to the government for waiver of this norm so that we can start services on international routes. We are confident of securing the relaxation sometime this year.” He added the company has identified select routes in Southeast Asia and the Gulf countries. Roni said once the government approved its application, the airline would also consider starting flights to Singapore, Sri Lanka and Nepal.
GoAir has a market share of over seven% which is higher only to Kingfisher and has been modestly expanding capacity since its inception. Last year the airline signed a deal with Airbus to acquire 72 airbus A320 planes.
