In a move that could pave the way for lifting of the freeze on aviation bilateral that allow more market access to foreign carriers in the Indian market, the government has agreed to grant new landing rights to Qatar Airways .An understanding to this effect has been arrived at and this would enable the Gulf-based airline to gradually increase the capacity deployed in India to 24,000 seats per week, said highly-placed civil aviation ministry sources who do not wish to be identified.
The government has slammed the brakes on bilateral aviation agreements following the slump in demand which has pushed airlines into huge losses. Since overcapacity was for blamed for eroding yields, the governments were providing a breather to carriers like Air India and Jet Airways which operate on international routes.
The pact with Qatar is the first significant aviation bilateral since the freeze on market access was imposed, the sources said. The government conceded additional market access after Qatar assured India of increased gas supply and more investments, they added. The ideal is significant since deployment of additional capacity would lead to lower fares on the India-Gulf sector. Passengers from India would also get access to cheaper onward fares as Qatar Airways operates from its Doha base to several destinations in Europe, Africa and North America.
However, national carrier Air India and private sector leader Jet Airways are likely to face the heat.” Overcapacity is still an issue. Fresh bilateral were considered avoidable because of overcapacity and the situation has not changed,” a senior official of Air India said on condition of anonymity since the decision to grant more rights to Qatar has been taken by the government which owns the airlines.
Moreover, it is feared that the Qatar deal may encourage other airlines like Emirates and Singapore Airlines to demand more access to the Indian market .The additional rights granted to Qatar will kick in gradually over the next couple of years, the civil aviation ministry sources said. The national carrier of Qatar may also get to mount flights to more destinations in India, they added. The government has not so far made any announcement on the deal with Qatar.
|
|
