BUSINESS

Regional airlines can spread their wings abroad

August 29, 2007 02:43 IST

Regional airlines will be allowed to start international flights provided they meet the civilian aviation ministry's norms, a ministry official has said.

"An airline can get permission for international operations subject to the fulfillment of criteria for international operations. For instance, an airline operating in the northern region can start Delhi-Kathmandu operations," said a ministry spokesperson.

This means a regional airline does not have to confine its operations to the domestic sector.

However, it could be early days for start-up regional carriers. Under the rules, a regional airline has to run on the domestic sector for five years -- three years if the norms are relaxed under the proposed policy, which is being examined by a group of ministers -- for being eligible for international operations.

Also, a regional airline has to have a minimum of five aircraft at the end of two years and at least 20 aircraft for international operations. Paid-up equity for a regional airline with five aircraft has to be Rs 20-50 crore (depending on the weight of the aircraft).

The paid-up capital for international operations has to be at least Rs 100 crore.

The move will nevertheless be a major boost for the airlines that are awaiting the ministry's approval for scheduled operations. The civil aviation minister had announced that these would be given regional permits to enhance regional connectivity.

At present, eight start-up passenger airlines, Mukti Airways, Air Dravida, King Airways, Premier Airways, Star Aviation, MDLR (which has non-scheduled operations), Mega Airways and Zav Airways, are awaiting permission for scheduled operations.

A regional airline is allowed to operate in any one of the designated regions, viz, North, South, East/Northeast and West. It can operate from only one metro city in its region. It can fly to other regions but not to another metro. For instance, a regional airline operating in the northern region can operate between Delhi and Ranchi but not between Delhi and Kolkata.

Source:

NEXT ARTICLE

NewsBusinessMoviesSportsCricketGet AheadDiscussionLabsMyPageVideosCompany Email