India, currently the world’s ninth-largest market for airlines, announced a new aviation policy Wednesday, a move that is likely to bring cheer to foreign airlines looking to enter the lucrative market. Among other things, the new rules ease requirements for airlines to fly international routes and the policy envisages increasing the domestic network significantly in the next three years.
Earlier rules, formulated in 2004, required airlines to have at least 20 operational aircraft in their fleet and fly domestic routes for a minimum of five years before they could be granted permission to fly international. Now, airlines need to fly 20 planes or 20 percent of their total capacity, whichever is higher, on domestic routes to fly outside the country.
New airlines in the country, such as AirAsia or Vistara — backed by Singapore Airlines and India’s Tata group — had been pushing for the change, which will allow them to compete better with the older, more established airlines.
Air Asia CEO Tony Fernandes said on Twitter he thought the 20-aircraft requirement was excessive, but called the policy “superb” and thanked Indian Prime Minister Narendra Modi.
To Read the News in Full 16/06/16 Himanshu Goenka/IBTimes
Earlier rules, formulated in 2004, required airlines to have at least 20 operational aircraft in their fleet and fly domestic routes for a minimum of five years before they could be granted permission to fly international. Now, airlines need to fly 20 planes or 20 percent of their total capacity, whichever is higher, on domestic routes to fly outside the country.
New airlines in the country, such as AirAsia or Vistara — backed by Singapore Airlines and India’s Tata group — had been pushing for the change, which will allow them to compete better with the older, more established airlines.
Air Asia CEO Tony Fernandes said on Twitter he thought the 20-aircraft requirement was excessive, but called the policy “superb” and thanked Indian Prime Minister Narendra Modi.
To Read the News in Full 16/06/16 Himanshu Goenka/IBTimes
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