New Delhi: The civil aviation ministry’s proposal to allow trading in domestic flying credits to help new airlines fly abroad has not found takers among those with large fleets.
Current rules require airlines to have flown in India for five years and have 20 planes in their fleet before they are allowed to fly abroad. According to the proposed changes, airlines will have to acquire credits based on the routes they fly to earn international flying rights. A quarter of these credits can be bought by airlines from their competitors.
“Why should we sell our credits to them and make their life easy? We waited for five years. It is a bizarre idea that we will trade and help them compete with us," said a senior executive with a leading airline. The bigger airlines will have 4,000-5,000 credits, much higher than what they need for flying abroad.
21/03/15 Somesh Jha/Business Standard
Current rules require airlines to have flown in India for five years and have 20 planes in their fleet before they are allowed to fly abroad. According to the proposed changes, airlines will have to acquire credits based on the routes they fly to earn international flying rights. A quarter of these credits can be bought by airlines from their competitors.
“Why should we sell our credits to them and make their life easy? We waited for five years. It is a bizarre idea that we will trade and help them compete with us," said a senior executive with a leading airline. The bigger airlines will have 4,000-5,000 credits, much higher than what they need for flying abroad.
21/03/15 Somesh Jha/Business Standard
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