A380 carriers win as India mulls open skies to smaller centres
Source:transportweekly 2014-1-20 9:54:00
Singapore Airlines and Malaysia's AirAsia will win big if India eases restrictions on smaller domestic carriers from flying international routes as many expect it will within a month, according to the Shipping Gazette.
Start-ups established by Singapore Airlines (as yet unnamed) and Malaysia's AirAsia, which hope to commence operations this year, would be the beneficiaries if regulatory approval comes through.
India is also considering proposals to allow giant Airbus A380s to land at local airports, said Indian Aviation Minister Ajit Singh.
This would also open populous smaller centres to SIA, Emirates, Lufthansa and BA that operate A380s, as well as A380 customers like Etihad and Qatar Airways which have not taken delivery of the super-jumbos.
India's ban on A380s is mainly due to concerns that foreign carriers may further hurt state-run Air India by grabbing a larger share of international traffic, said Reuters.
Under existing rules, Indian carriers are required to be in operation for at least five years and have 20 aircraft to fly international routes.
Mr Singh told reporters that New Delhi would seek the federal cabinet's approval by next month to "scrap this rule".
"At a macro level, this restores credibility to the Indian aviation sector," said Amber Dubey, an aviation expert at consultancy KPMG.
"It shows that the policy direction is always towards greater competition, the respect for logic, and being more aligned to global best practices," he said.